XRP Lawsuit: Ripple CLO Takes Aim at Gensler in SEC Showdown
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Gensler made fun of the cryptocurrency business a few days ago and claimed that it is replete with fraud, misuse, and misbehaviour. In a similar vein, he made the same claim again in his most recent appearance before the House Committee on Financial Services.
On September 27, 2023, at 10 a.m. Eastern Standard Time, a hearing titled “Oversight of the Securities and Exchange Commission” will be webcast live. Gensler had said in the testimony that “the majority of crypto tokens are subject to the securities laws,” extending the widely criticised US SEC position on cryptocurrency regulation.
This statement by Gensler further fueled the ongoing debate surrounding the regulatory framework for cryptocurrencies. Critics argue that such a broad interpretation of securities laws could stifle innovation and hinder the growth of the crypto industry. However, proponents believe that increased regulation is necessary to protect investors from potential risks associated with fraudulent activities in the crypto market.
His Silence is Getting Louder
Additionally, he sent a prior notice of his intention to remain silent about pending legal matters, including the XRP case and the Grayscale spot ETF conversion decision.
Gensler said that there was still work to be done with the SEC authorities on the organisation’s activities so far regarding the approval of spot Bitcoin exchange-traded funds (ETFs).
This silence has left many speculating about the potential impact on the cryptocurrency market. Investors and industry experts are eager to hear Gensler’s thoughts and plans regarding the regulation of digital assets. Some believe that the lack of communication could simply be a strategic move to avoid any potential market manipulation. Regardless, the crypto community eagerly awaits further updates from the SEC chair on these critical matters.
Gensler’s Unprofessional Behavior
US Representative Ritchie Torres’ post on X where Mr. Torres captioned “Gensler struggled to answer basic questions like whether an investment contract requires a contract. His evasions are deafening and damning.”
Alderoty expressed his disappointment with the SEC Chair’s unprofessional behavior, stating that it is crucial for regulatory leaders to engage in meaningful dialogue and address concerns raised by industry professionals.
Grabbing the opportunity, Stuart Alderoty re-posted Torres’ post and criticized Gensler. “For hours Mr. Gensler smugly evaded question after question (even laughing about how rich he is) until Rep. Torres took him out with a command of the law and a touch of South Bronx street sense. Gensler didn’t know what hit him until it was too late”, he says.
