The recent security breach that hacked the X account of the US Securities and Exchange Commission (SEC) to post a false approval of a Bitcoin spot exchange-traded fund (ETF) has sparked anger from crypto and Wall Street companies alike. It re-focused the public eye on what critics of chairman Gary Gensler have been calling gross overreachwith some implicitly calling for his resignation.
Gensler said on Wednesday that while artificial intelligence is a net positive for the industry, it comes with undeniable risks.
How SEC and Gensler Came to Target Crypto
However, many on Wall Street believe that Gensler is being ambitious. At the outset of his tenure, Gensler promised to bring stricter rules for crypto, stock markets, and climate change. His quest has attracted lawsuits at the heart of the SEC’s mandate to protect investors.
Ripple’s case, in which a court ruled that retail sales of XRP were not unregistered securities, and another case, in which a judge ruled that the SEC was wrong to deny a Bitcoin ETF based on market manipulation concerns, have dealt with Gensler’s SEC two damaging blows. Public outcry about the agency’s mischaracterization of the intentions of another cryptocurrency company, Debt Box, is also marring Gensler’s legacy
The SEC chair may be forced to exit his position if Republicans win the 2024 election. However, Gensler could complete his term until 2026 if Democrats win.
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