The SEC’s Anti-Crypto Stance
When Gary Gensler became the chairman of the Securities and Exchange Commission (SEC), many in the crypto sector had high hopes for his understanding of the industry. However, Gensler quickly revealed himself to be determined to bring down the crypto industry, considering everything besides bitcoin to be a security.
A Fightback from Crypto Companies
Despite Gensler’s actions, a few crypto companies, such as Coinbase, Grayscale, and Ripple, had the resources to fight back against the SEC through the courts. Ripple’s victory was significant, as the court ruled that XRP was not a security. Grayscale also won their case, with the judge criticizing the SEC’s stance. This has paved the way for the approval of Spot ETF proposals in early 2024.
Criticism of Gensler and the SEC
Hester Peirce, an SEC commissioner, accused the agency of being “lazy and paternalistic” and criticized its inadequate compliance process. The motive behind Gensler’s anti-crypto stance remains uncertain, but it is speculated that he was tasked with stifling the crypto industry to protect fiat currency and the banking system.
Is the SEC’s Waterloo Approaching?
The SEC may face a turning point in 2024 if there is a change in personnel due to a new administration. If the Biden administration is voted out of office, the SEC’s anti-crypto campaign could come to an end.
Hot Take: Will 2024 Bring an End to the SEC’s Anti-Crypto Crusade?
The SEC’s relentless pursuit of the crypto industry and its disregard for innovation has faced numerous setbacks in 2023. With rulings favoring Ripple and Grayscale, it is clear that the SEC’s regulation by enforcement strategy is losing momentum. Chairman Gensler’s approach has been criticized as lazy and paternalistic, even from within his own agency. As the crypto industry fights back and gains victories, it raises the question of why the SEC is so determined to crush crypto. While it remains to be seen if the SEC will face its Waterloo in 2024, potential changes in personnel during a new administration could bring an end to this anti-crypto crusade.
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