Title: SEC Chair Gary Gensler Remains Committed to Enforcement Actions Against Crypto Industry Despite Backlash
Gensler Backlash Mounting
Despite mounting pressure against his claims that crypto assets are securities, SEC Chair Gary Gensler remains steadfast in his approach.
Bloomberg ETF analyst James Seyffart has highlighted that many Senators are criticizing Gensler for proposing a plethora of rules without the support of Congress.
Tons of senators are going after Gensler for the avalanche of rule proposals in his admin that do not have the backing of congress. Gonna be a key aspect to watch when/if the SEC starts losing cases in the courts via the major questions doctrine h/t @nathandeanDC @NYCStein https://t.co/mjHFHl5588 pic.twitter.com/TU3sMrirYb
— James Seyffart (@JSeyff) September 12, 2023
SEC Harnessing AI
Gensler revealed that the SEC is leveraging artificial intelligence (AI) technology to monitor the financial sector for signs of fraud and manipulation.
During a Senate oversight hearing, Gensler acknowledged the use of AI but provided minimal details: “We already do [use AI]. In some market surveillance and enforcement actions. To look for patterns in the market.”
However, he also warned about the dangers posed by AI-generated deepfake content, which can easily deceive humans and pose a genuine threat to financial markets.
In written testimony to the Senate Banking Committee on Sept. 12, Gensler emphasized that the crypto asset securities market should be subject to the same protections as traditional securities. He stated, “There is nothing about the crypto asset securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws.”
Contrary to Gensler’s assertions, the courts have recognized that decentralized digital assets and their underlying technologies do not fall under the category of securities. This was evident in the recent ruling in favor of Ripple and the sale of XRP to retail traders.
Despite the backfire, Gensler defended the SEC’s key rule-making initiatives while facing criticism from Republican lawmakers. Representative Tim Scott voiced his concerns, stating, “The regulations the SEC has proposed under your leadership are unjustified and are sowing discord and confusion for industry and market participants alike.”
Gensler, however, remains proud of the approximately 750 enforcement actions filed by the SEC in the last year, asserting that the agency is diligently protecting investors’ interests.
Sources:
– Testimony to the Senate Banking Committee: [LINK]
– Mounting pressure against Gensler: [LINK]
– Recognition of digital assets as securities: [LINK]
– SEC’s key rule-making initiatives defended: [LINK]
– Gensler’s pride in SEC’s enforcement actions: [LINK]
– Gensler’s acknowledgment of AI usage: [LINK]
– Warning about AI-generated deepfake content: [LINK]
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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