Is SEC Chair Gary Gensler’s Approach to Crypto Regulation Hurting Innovation?
Gary Gensler, the head of the Securities and Exchanges Commission (SEC), previously stated that the status of Ethereum as a security has changed.
During a lecture at MIT on blockchain, prior to his appointment by Joe Biden to head the SEC, Gensler noted that although Ethereum may have been considered a security in 2014, the SEC now considers it to be decentralized enough that it no longer qualifies as a security.
However, during a recent appearance before the Committee on Financial Services, Gensler declined to confirm whether or not Ethereum is a security.
This refusal to answer the question has caused concern among some in the crypto community, who fear that Gensler’s opinions are driving the SEC’s approach to regulation.
Some have even suggested that his actions have led to chaos among crypto startups, causing some to leave the US.
The crackdown on the stablecoin BUSD was reportedly influenced by Gensler’s personal opinion. Kraken can no longer provide staking services to US citizens earning less than $100,000. Additionally, Coinbase’s stock has taken a hit due to Gensler’s preference for sending Wells Notices over issuing rulings through proper procedures.
Despite his numerous enforcement actions towards the crypto industry, Gensler has yet to issue any regulations, policy statements, or rulings on any aspect of crypto.
This has raised concerns about the SEC’s reliance on one person’s opinions rather than functioning as an institution with public accountability and input.