Crypto Community Criticizes Gensler’s Cryptocurrency Warning

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Prominent figures in the cryptocurrency world have strongly criticized U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s recent statements regarding the cryptocurrency industry.

The individuals accused Gensler of spreading fear, uncertainty and doubt (FUD) about the cryptocurrency market and called for the head of the regulator to be held accountable.

Gensler Concerns and Disadvantages

among those Comment Recently, U.S. Securities and Exchange Commission Chairman Gary Gensler highlighted several risks associated with cryptocurrencies, including noncompliance with securities laws, market volatility, and an increase in fraudulent activity.

However, his comments drew harsh criticism from members of the cryptocurrency community, who said he failed to present a balanced perspective.

Messari founder and CEO Ryan Selkis disputed Gensler’s claims, emphasizing Bitcoin’s continued performance as the most “rewarding” investment in its 15-year history.

Serkis accused Gensler of omitting this important information from the statement and said his comments were spreading panic among investors.

SEC made false statements to court

Coinbase Chief Legal Officer Paul Grewal pointed out the SEC’s recent misstatements in the DEBT Box lawsuit.

Grewal highlighted the SEC’s actions and questioned the sincerity of the regulator’s apology.

Previously, the U.S. Securities and Exchange Commission (SEC) admit It made inaccurate statements in a lawsuit against crypto startup DEBT Box, but regulators insisted the company’s assets should still be frozen.

In November, a federal judge in Utah criticized the way SEC lawyers handled the case and asked them to provide a basis for requesting an injunction against DEBT Box and freezing the company’s assets.

Judge Robert J. Shelby ordered the Securities and Exchange Commission to explain the “false or misleading” statements after he said the company was trying to move assets overseas to evade regulators.

By juxtaposing Gensler’s claims with the SEC’s court troubles, Grewal hinted at a lack of trust and consistency among regulators.

Allegations of dishonesty and incompetence

CryptoLaw, an influential account in the cryptocurrency space, also criticized the SEC, saying that under Gensler’s leadership, the SEC had been dishonest in cryptocurrency-related cases and could face sanctions.

The tweet accuses Gensler of allowing fraudulent activity to occur on his watch, such as the case involving Sam Bankman-Fried (SBF).

CryptoLaw called for Gensler’s resignation, calling him a mismanaged and incompetent leader, while also casting doubt on the veracity of his comments.

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Gensler’s recent tweets on cryptocurrency-related issues went viral, racking up more than 25.4 million views in less than a day. The widespread opposition from the cryptocurrency community highlights the SEC’s divided stance on regulating and overseeing the rapidly growing cryptocurrency market.

While Gensler was met with strong criticism for his comments, the timing of his tweet led many to predict that a spot Bitcoin ETF was about to be approved.

This adds another layer of speculation to the ongoing debate surrounding cryptocurrency regulation and investor protection.