Gensler’s SEC Speech Ignites Criticism from Ripple and Crypto Community

Gensler’s Call for Honest Business

In a fiery speech at the 2023 Securities Enforcement Forum, SEC Chair Gary Gensler reiterated the agency’s role as a partner in support of honest business practices. He quoted the first SEC chair, Joseph P. Kennedy, emphasizing that the SEC aims to investigate dishonesty rather than persecute honest endeavors. This was a noble sentiment, but some believe it might have been a case of ‘do as I say, not as I do.’

The Ripple Effect

Ripple’s legal team didn’t take Gensler’s comments lightly. Stuart Alderoty, Ripple’s chief legal officer, wasted no time in challenging Gensler’s assertions. He highlighted that while the SEC claims to be a partner in honesty, they have been anything but fair with the crypto industry, suggesting that Gensler has already formed judgments against cryptocurrency without adequate investigation.

Community’s Reaction: A Crypto Circus

The crypto community, known for its colorful reactions, was quick to take to social media. Erik Voorhees, the CEO of ShapeShift, chimed in, stating that Gensler has gone after his honest business not once, but twice. It’s like a game of whack-a-mole, where every time one honest business pops up, the SEC swings down with a hammer!

Vicious Cycle of Criticism

Critics argue that the SEC is becoming increasingly irrelevant on the global stage, losing battles in court and garnering backlash for questionable practices. Alderoty is not alone in this sentiment. Many believe the SEC has become mired in a system that prioritizes enforcement over fair regulation, with allegations of pushing a ‘corrupt system’ rather than safeguarding honest businesses.

The Elephant in the Room

While Gensler made a claim about not prejudging crypto, Alderoty’s pointed remarks question the integrity of such statements. Is the SEC simply a snow globe of bureaucratic pressure, shaking up the crypto world while claiming neutrality? Some might argue yes, and they seem ready to dive into a legal battle for the ages. Gensler, under intense scrutiny, may need to offer some answers sooner rather than later.