The US Democrats are distributed in two groups, one in favour of Gary Gensler & other is against him.
Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC), was a bitcoin & blockchain technology-friendly person but when he joined the SEC agency then he became one of the popular crypto critics. Many times, Gary said that cryptocurrencies are only different from traditional assets in terms of back-end technology but the use & nature is the same and cryptocurrencies can be easily regulated under the existing traditional laws.
In the past few weeks, especially after the downfall of the FTX exchange, Gary faced significant criticism over his failure to stop the bankruptcy & high-level fraud of multiple companies in the crypto sector.
The US Rep. Josh Gottheimer criticised the SEC boss and said that Gary repeatedly claimed that most cryptocurrencies are covered by existing securities laws but never proposed a single rule to save the digital assets companies from illegal or bad activities.
Rep. Ritchie Torres said that Gary never did any work to bring transparency or accountability to the crypto sector. And also slammed Gary’s stances on crypto & said he’s not paid to be a commentator on crypto but he’s paid to be a regulator on crypto.”
However many US Democrats criticised the SEC boss but opposite of such criticism, Gary secured significant support from other Democrats. But the statements passed in favour of Gary were hinting at the new regulation development work with Commodities regulatory body CFTC.
In the past, Gary faced significant criticism from the crypto sector. On multiple occasions, Gary was questioned whether Ethereum was a security or not but he never replied. In the present time, SEC is fighting against San Francisco-based Fintech firm Ripple over the nature of XRP. Through the lawsuit, SEC claimed that XRP is an unregistered security but Ripple claimed that XRP is not a security as per a statement passed by former SEC official Hinman over the nature of Ethereum.
In the Ripple vs SEC case, many crypto proponents claimed that the SEC should work on bringing laws & policies to make the regulation system clear instead of imposing regulatory pressure blindly.