Prominent figures within the cryptocurrency community have taken to social media to voice their strong criticism of recent statements made by the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler regarding the crypto industry. 

These individuals have accused Gensler of spreading fear, uncertainty, and doubt (FUD) about the crypto market and have called for accountability as the head of the regulatory body.

Gensler’s concerns and omissions

In his recent comments, SEC Chair Gary Gensler highlighted several risks associated with cryptocurrencies, including non-compliance with securities laws, market volatility, and the proliferation of fraudulent activities. 

However, his remarks drew sharp criticism from members of the crypto community, who argue that he failed to provide a balanced perspective.

Ryan Selkis, the founder and CEO of Messari, countered Gensler’s claims by emphasizing Bitcoin’s consistent performance as a top-performing investment over its 15-year history. 

Selkis accused Gensler of omitting this crucial information from his statements and characterized his remarks as fear-mongering.

SEC’s misrepresentations in court

Paul Grewal, the Chief Legal Officer of Coinbase, pointed to recent misrepresentations by the SEC in a court case involving DEBT Box. Grewal highlighted the SEC’s actions and questioned the sincerity of their apologies in the context of their regulatory oversight. 

By juxtaposing Gensler’s statements with the SEC’s court troubles, Grewal insinuated a lack of credibility and consistency within the regulatory body.

Allegations of dishonesty and incompetence

CryptoLaw, an influential account in the crypto space, contributed to the criticism by alleging that under Gensler’s leadership, the SEC has been dishonest in a crypto-related case, potentially facing sanctions. 

The tweet accused Gensler of allowing fraudulent activities, such as the situation involving Sam Bankman-Fried (SBF), to occur under his watch. CryptoLaw called for Gensler’s resignation, citing him as the wrong regulator and an incompetent leader, while raising doubts about the integrity of his statements.

Viral backlash and speculation

Gensler’s recent tweets on crypto-related issues quickly went viral, garnering over 25.4 million impressions in less than a day. The widespread backlash from the crypto community highlights the division of opinions on regulating and overseeing the rapidly evolving cryptocurrency market.

While Gensler’s remarks faced significant criticism, the timing of his tweet led many to anticipate the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) in the near future. 

This development adds another layer of complexity to the ongoing discourse surrounding cryptocurrency regulation and investor protection.