The crypto community under a pro-crypto government is seeking revenge against the SEC. Crypto enthusiasts are following up on previous SEC employees who worked under Gary Gensler to ensure their exit from the industry. Their major reason? To prevent another Gensler era.
One word to describe the crypto industry under former chair Gary Gensler: a nightmare. Crypto leaders were in and out of court. Now, the government is on their side. In fact, they were at the forefront of President Donald Trump’s campaigns and now get to be part of the decision-making.
However, they have taken matters to an extreme end. Coinbase CEO Brian Armstrong and Ripple’s Stuart Alderoty want law firms that hire SEC employees who were involved in the crackdown to be avoided. This will make it harder for people who are leaving the agency to find work.
In addition, Coinbase asked the SEC how much money it spent looking into crypto companies when Gary Gensler was Chair. Cameron and Tyler Winklevoss, the billionaire twins who backed Trump and run the crypto company Gemini, want the agency to fire the agents who worked on their case and make a public statement against them.
Trump has brought respect back to the industry and agreed on crypto stockpiles and the strategic Bitcoin reserve. He has also dealt with debanking one of the major discrimination issues that the industry was going through. However, the crypto leaders want more.
Crypto industry leaders go after the SEC
As of now, temporary Chair Mark Uyeda is in charge of the SEC. Since Trump took office, the agency has been easing up on its enforcement efforts while it works on crypto regulations. At least 10 lawsuits and probes against crypto companies, such as Coinbase, Robinhood, and Gemini, have been dropped or put on hold so far.
There was pushback, which could help lawmakers’ efforts to put new limits on the SEC’s power over crypto. This is something lawmakers say is important this year. As the head of the House Financial Services Committee’s digital assets group, Rep. Bryan Steil said that deciding who should police the market will stop some of the enforcement abuses seen during the previous administration.
Some crypto leaders have said mean things about the SEC and its workers, but other crypto leaders say they don’t hold a grudge against them. Instead, they want to stop what they call an agency’s misguided enforcement push from happening again.
Coinbase Chief Legal Officer Paul Grewal opposes hiring the SEC staff. He says, “People havea right to earn a living. They have a right to take their talents wherever they want to take them[…] But we, too, have a right to decide who we’ll work with.”
In the same light, Ripple’s Alderoty said in a statement: “Accountability — not retribution — is critical to ensure we do not see a repeat of the SEC’s overreach in the future.”
In addition, Cameron Winklevoss said, “Crypto needs rules, not because investors lack protection but because builders and companies lack protection — we need a firewall against federal regulatory attacks […] [The] enemy is inside the system.”
Any future crypto legislation must make it very hard to weaponize federal agencies against crypto. Crypto needs rules, not because investors lack protection but because builders and companies lack protection — we need a firewall against federal regulatory attacks. This should be…
The body run by Republicans is likely to be much more willing to listen to crypto’s needs. But it is still in charge of a big part of the market, and crypto companies that want to go public, get easier rules, or start new investment products will need to get its approval.
Who is on the ex-SEC employees’ side?
Many long-time SEC employees are getting worried about the team. A Republican named Hester Peirce and a Democrat named Caroline Crenshaw recently supported the staff’s work by saying that they follow the rules set by the SEC’s leadership.
Corey Frayer, who was Gensler’s senior advisor on crypto issues, said they’re using this opportunity to get the SEC off anybody. This includes the career staff, who they felt were unfavorable to their desire not to be regulated.
He added, “It’s very telling that crypto leaders who are very wealthy and already very influential in Washington are still so insecure that they need to punch down at agency staff who can’t defend themselves.”
Some people say public protest isn’t needed. A former SEC employee who asked to remain anonymous said that the business is getting what it wants with the agency’s decision to ease up on enforcement and stick to crypto-specific rules.
In his own words, William McLucas, who used to be the SEC’s enforcement head, told the crypto firms, “Get over it.” He asked the crypto leaders to concentrate on doing business and added, “What are you gaining by trying to personally make these people unemployable or to harass them?”
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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