CryptoLaw has sent members of the US Congress to the crypto community arguing that “Gary Gensler’s official actions and possible role in one of the biggest scams in American history.” Congress seems to be under pressure in the wake of the FTX crisis. Many began to question whether there was a consensus in the middle of the crypto exchange and the SEC leader.
Is there a contact between FTX and SEC leader Gensler?
According to the US crypto regulatory news outlet, members of the crypto community deserve their questions answered. As the crypto community tries to resolve FTX’s bankruptcy, contacts are noteworthy amid the exchange’s CEO, SBF, and US Securities and Exchange Committee (SEC) leader Gary Gensler.
🚨CONNECT TO CONGRESS🚨
US residents click below to write your Congressional representative and demand a full investigation of @GaryGensler’s official actions and possible role in what may be one of the biggest frauds in American history 👇🏻https://t.co/GzHabgv36z— CryptoLaw (@CryptoLawUS) November 10, 2022
On behalf of XRP holders in the SEC and Ripple lawsuit, CryptoLaw founder and amicus curiae John E. Deaton shared in a tweet yesterday. The tweet included the argument that the SEC continues to fail in its mission to defend cryptocurrency holders in the US. John E. Deaton points out that SEC leader Gensler met with the SBF prior to the FTX crisis.
Here is the message:
“The SEC’s job is to protect investors, but Gary Gensler as chairman has failed to protect retail digital asset holders over and over. https://t.co/Ra0og5yE5y
— John E Deaton (@JohnEDeaton1) November 10, 2022
JagoeCapital, the Web 3 startup founder, forged relationships that claimed Alameda Research CEO Caroline Ellison knew Gensler personally. As a result, while Gensler was still a professor at the institution, his father was the head of the Economics department at the Massachusetts Institute of Technology (MIT). Mark Wetjen, political leader at FTX USA, served with Gensler during his CFTC presidency mission. FOX Business journalist Eleanor Terret shared on her Twitter account.
Also worth noting: A former @CFTC commissioner who served under @GaryGensler and replaced him as acting chair @MarkWetjen is FTX U.S. Head of Policy and Regulatory Strategy. Per a source, he was key in SBF’s Washington lobbying efforts and “introduced Sam to the right people.” https://t.co/Fa67dGrLm9
— Eleanor Terrett (@EleanorTerrett) November 11, 2022
Terret points out, citing anonymous sources, that Wetjen played a valuable role in introducing the SBF to prominent figures in Washington.
Emmer: We’re investigating this issue.
Congressional Representative for Minnesota, Tom Emmer, stated that he would investigate the issue in detail. In addition, Emmer gave the following words in his Twitter post:
Reports in my office contain arguments that SBF and FTX are helping to achieve regulatory exclusivity by working through loopholes. We are investigating this.
Interesting. @GaryGensler runs to the media while reports to my office allege he was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly. We're looking into this. https://t.co/SznowgcP6V
— Tom Emmer (@RepTomEmmer) November 10, 2022
As we have reported as Koindeks.com; Emmer is a member of the Investor Advocacy, Entrepreneurship and Capital Markets Subcommittee. However, these arguments are unfortunately not an empty bet, according to Emmer. Along with all this, FTX, FTX.US, Alameda Research and SBF are under investigation by the US SEC, according to a report published in Bloomberg. The report is on the side of the SEC that tracked the activities of the crypto exchange months ago. In addition, it is known that investigations have been launched against the US branch of FTX.
FTX crisis affected the entire cryptocurrency market
The cryptocurrency market took a big hit this week with the collapse of FTX, of which Sam Bankman-Fried is CEO. However, presidents interested in the cryptocurrency industry argued that the SEC was responsible in the aftermath of the crisis. The market crash triggered by Binance’s announcement with FTX wiped out more than $100 billion in gains. CZ abandoned the planned acquisition this week. However, it is known that this decision was made after examining the documents related to FTX.
In the middle, the comments made by SEC Leader Gary Gensler after the FTX crisis drew attention. Several crypto leaders and experts said they were disappointed. In an interview, Gensler explained that investors need better protection in this area. Gensler also explained that investors saw significant losses.
The SEC is known to have actually launched an investigation into the US arm of FTX. The board also began investigating the relationship between FTX and several other SBF-related companies.
Will it affect the case in the middle of XRP and the SEC?
Ripple’s advisor, Stuart Alderoty, shared his views on the SEC leader’s comment. He stated that Gensler was on the wrong talking point. He says the SEC leader is influencing the regulation of the crypto industry due to his quest for power. According to Alderoty, in this case, it directly causes a deep financial loss in the country.
The only runway that’s running out is these worn out (and frankly false) talking points from SEC Chair @GaryGensler. His insistence on elevating the SEC’s quest for power over effective regulation in this country is creating deep financial damage. https://t.co/U17bfOWRRY
— Stuart Alderoty (@s_alderoty) November 10, 2022
Alderoty further argued that the SEC Leader had failed once again. However, he pointed out that while there are a lot of companies pending in bankruptcy courts, the SEC still continues to talk about the Kim Kardashian case. He says what happened in FTX had a big impact. The cryptocurrency market has lost over $100 billion in just a few days.
