With no thought for the industry or for retail investors Gary Gensler has bombed the crypto market with the suing of Binance.
Gensler’s planIf there was ever the slightest doubt over SEC Chairman Gensler’s strategy towards the cryptocurrency sector, there can now be none. The SEC, with its main mandate to protect retail investors, has dropped another bomb on crypto and sent the market into a tailspin.
Let’s be clear, if Binance has done anything that warrants sanctions and penalties, then there would be a due process for the SEC to make its case. However, it appears that the SEC is tarring the entire crypto industry with the same brush and would bring it to its knees in order to apply the letter of the securities law, or at least the securities law as Gensler sees it.
It would appear that Gensler’s ultimate goal is to force all retail investors out of crypto and back to the embrace of the banking system. He would do this by choking off all on/off ramps to the exchanges, and by entangling all the exchanges in costly litigation.
The SEC has gone for the jugular by choosing to first attack some of the exchanges working towards full compliance in Coinbase, Kraken, Paxos, and now Binance. Is it the fault of any crypto project that they cannot approach the SEC in order to register, given that even SEC Commissioner Hester Peirce says that this process is almost impossible?
It needs to be absolutely clear that what is happening today with the US government, and its enforcement agencies, is that they are systematically attempting to put the entire crypto industry out of business.
Why would this be the case?
An industry that is for the people, in that it wants to provide innovation and wealth-making means that will enable everyone to be able to be their own bank and make financial decisions that are outside of the system, is seen as a threat to the system itself.
Banks have become monstrous entities that seem to have more power than governments now. They have become obsolete and no longer serve the people. Governments are printing more and more fiat currency which is borne by the people in the form of inflation, and reduced purchasing power.
A system such as this can do without a competitor right now. Banks are failing and the Federal Reserve just backs them with currency printed out of thin air. Interest rates are high, unemployment is rising, and prices are going through the roof.
Bitcoin and various strands of the cryptocurrency sector are building another system that each individual can be part of. When the monetary system as we know it comes tumbling down, things are going to be bad beyond imagining. However, with Bitcoin and crypto a new and fairer world can exist.
An all-important standIt is up to the few to make a stand and resist the likes of Gensler. He talks of everything being a security and has stated that he would like to see a middle man between every crypto project and their customers. He has even resorted to applying enforcement actions against developers of DeFi projects because he can’t get at the project itself.
The fight today between the government, the banks, global financial agencies, and the enforcement agencies on the one side, and the crypto industry on the other, will deeply affect the lives of our children tomorrow. Let us hope that the few will prevail for the benefit of the many.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
