Following his short-sighted commentary on Bittrex, Gary Gensler causes controversy in the cryptocurrency community.
A recent remark by Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), precipitated a significant backlash in the cryptocurrency community. Gensler’s tweet was in response to the SEC’s announcement that it had cited Bittrex Inc., its co-founder and former CEO William Shihara, and its foreign affiliate Bittrex Global GmbH with multiple regulatory violations.
In a tweet, Gensler stated, “Today’s action demonstrates once again that the crypto markets suffer from a lack of regulatory compliance rather than a lack of regulatory clarity.” Bittrex is charged with operating an unregistered securities exchange, merchant, and clearing agency by the SEC.
However, many in the crypto community were outraged by Gensler’s comments, arguing that the primary issue in the space is the absence of explicit regulations. They argued that Bittrex should not be deemed a stock exchange because it facilitates the trading of digital assets primarily.
Several responses to Gensler’s remark underlined the need for regulatory clarity in the world of cryptocurrencies, which is swiftly evolving. One user inquired, “Which of the top 10 coins are securities?”
Another comment emphasized the need for the SEC to update its regulations and methods to keep up with technological advancements and evolving business models. A user inquired to Gensler, “Who was protected though, Gary?”
Critics of the SEC’s actions emphasized that attempting to apply antiquated laws to contemporary technology is counterproductive and inhibits innovation. One user urged Gensler to consider the future, stating, “Technology is only exported when it is slowed down.” 5 years in the future, consider your reputation. Future-oriented, Gary.”
Also Read: SEC Chairman Gary Gensler Declares Algorand a Security After Being Caught Selling It
