SEC’s Gensler pushes back on industry’s call to recuse from crypto actions

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By BitcoinWiki News

Key Takeaways:

– Securities and Exchange Commission Chair Gary Gensler rejects calls from the crypto industry to recuse himself from making certain crypto-related decisions.
– Gensler states that he is fully compliant with the law and takes his oath to enforce the law seriously.
– He emphasizes the importance of protecting the investing public and evaluating each individual token and platform.
– The Blockchain Association argues that Gensler should recuse himself due to his past statement that all digital assets except bitcoin could be considered securities.
– The Blockchain Association also requests an investigation into the granting of a special purpose broker-dealer license to Prometheum, a company with differing views on crypto and securities laws.
– Various firms, including BlackRock and Fidelity, list Coinbase as a market surveillance sharing partner for the first spot bitcoin exchange-traded fund (ETF) in the US.
– Gensler expresses concern about crypto exchanges operating conflicted services and warns of limited risk monitoring for wash trading on crypto platforms.
– The SEC has rejected numerous spot bitcoin ETF applications due to transparency and market manipulation concerns.


SEC Chair Gary Gensler has rejected calls from the cryptocurrency industry to recuse himself from certain crypto-related decisions, stating that he is “fully compliant” with the law. Gensler emphasized his oath to enforce the law passed by Congress and the interpretation of the courts, with a focus on protecting the investing public. The Blockchain Association had argued for Gensler’s recusal, claiming that his previous statement that “everything other than bitcoin” could be considered a security made it difficult for the industry to receive a fair assessment from the SEC. Additionally, the association called for an investigation into the granting of a special purpose broker-dealer license to Prometheum, a company that believes crypto should adhere to current securities laws.

The article also mentions Coinbase’s involvement in the spot bitcoin exchange-traded fund (ETF) race, with firms like BlackRock and Fidelity listing Coinbase as a market surveillance sharing partner. This development comes after the SEC charged Coinbase in June for operating as an unregistered exchange, broker, and clearing agency. Gensler did not specifically address the ETF filings but reiterated concerns about crypto exchanges offering conflicting services and the lack of risk monitoring for wash trading. The SEC has rejected many spot bitcoin ETF applications due to transparency and market manipulation concerns.

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