The Securities and Exchange Commission (SEC) Chair, Gary Gensler, received swift backlash from the crypto community for his Twitter criticism of the industry’s compliance.
Gensler claimed that widespread noncompliance undermines confidence and leaves victims helpless during crypto bankruptcies, implying they can only “stand in line” in courts.
Responding on X, crypto enthusiasts used the platform’s fact-checking feature to highlight the SEC’s lack of clarity on compliance despite pleas for guidance from companies like Coinbase.
Dogecoin creator Billy Markus accused Gensler of failing to establish clear rules, branding him “useless in every single way.” Ripple CEO Brad Garlinghouse called Gensler’s statements a “stunning hypocrisy,” labeling him a “political liability” damaging the SEC’s integrity.
Gensler’s critique of crypto compliance drew backlash, revealing frustration over the SEC’s lack of clarity and guidance, sparking accusations of hypocrisy and ineffectiveness from industry figures.