0 sats \ 7 replies \ @grayruby 24 Sep \ on: Multiple SEC Commissioners Come Out Swinging Against Chair Gensler to his Face bitcoin
You seem to have an unhealthy hate for Gensler. Who cares? Bitcoin surely doesn't care.
There is no crypto industry to save. You are just carrying water for scammers and grifters. Let it all die I say. That would be a positive outcome for humanity. The amount of wasted capital and human capital crypto has stolen from humanity is absurd.
I dislike him because he lies to Congress, lies to investors, and lies to the American public. The Biden Admin isn't going to hold him responsible and Congress's hands are tied. Not to mention he has burned $100s of millions in taxpayer dollars with his crypto crusades and doesn't win or settles because he won't win and doesn't recover what he spent.
So he asks Congress for more money for enforcement and thus he just lights more of our hard-earned money on fire being an idiot.
I hate people like him making Congress look stupid when Congress cannot do much if anything and burning tax payer money. Taxpayer money getting burned is a pet peeve of mine and is why my Committee has been moving to make more and more Fed Govt contracts be milestone based instead of just a blank check.
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You are more of a fan of guys like Hinman who take bribes from the ethereum foundation to make false statements to give eth preferred status over other shitcoins. I mean shouldn't all shitcoins be treated equally?
Maybe Gensler is taking enforcement too far because of the prior corruption in the department.
I mean I don't know the motives nor do I care. I certainly think crypto projects aren't providing investors accurate disclosures as other investment contracts do. So either abolish the SEC or compel everyone to follow the same rules. If you don't like the rules congress can pass a law to change them. Pretty straight forward.
Maybe you should direct your hate towards congress for not clarifying the rules or towards crypto scammers who seek to abuse them.
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So working for Congress I will be the first to say there is an issue there. However, in the in a bipartisan fashion I want to add the House where I work we have passed comprehensive reforms to update and clarify rules and regulations. In the Senate though Sen. Brown of Ohio, who is up for reelection, and Sen. Warren are managing to tank discussions.
They have backing from the Admin who is looking to Gensler for guidance. It was just a few years ago that Gensler testified before Congress saying her needed rule updates and changes plus a funding boost and he would fix it. He has since changed his mind and said that they have everything they need.
In the 117th Congress there was a stablecoin deal that was struck between Rep. Waters and Rep. McHenry until Gensler and Yellen stepped in and tanked it. Biden came out and told the House he would veto it if it passed both the House and Senate essentially killing it.
The SEC approach of regulation by enforcement typically would be the perfect fit. However, studies and history have proven that it prevents discussions between government and industries in emerging areas. It punishes these emerging areas by not providing clear pathways and instead of flagging it for Congress like he should Gensler has said nope all is well when that just isn’t the case.
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Crypto is not an emerging industry though. The entire digital world is not being rebuilt on chain. There will be no tokenization of assets and securities on a public blockchain. To the extent it will be done, it will be done a private blockchain that wall street insiders and regulators can influence. Besides a blockchain is merely a database. No one is trying to shut down projects for creating databases for various use cases. They are shutting them down for issuing equity to those databases in the form of tokens without proper disclosures.
Almost none of these projects need a token. Yet they all issue tokens. Why? to enrich themselves.
In my opinion, in the battle of evil vs evil you don't need to discern which is more evil and try to take the less evil side. You just root for all evil to die. So, I am happy for the SEC and crypto to destroy each other.
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For the SEC and what they have historically worked on though this is an entirely new industry. They had never before had to deal with anything like this. Its kinda like the computer and FinTech which enabled Robinhood and the surge of new traders.
I also have a differing view of some of these blockchains that I am not sure many people have. For instance if and this is a huge if Ethereum "makes it" then it is going to essentially create what I see as a global computer via smart contracts. Some may call it a new internet or whatever but because of the technical aspect behind it I think of it as almost a computer.
One the SEC has gone after and I think has stupidly done so because the idea was great and the engagement was great was the Chiliz Blockchain that issues Fan Tokens. Yes Fan Tokens and Chiliz itself started to be worth something but they gave away tens of millions of their token and approached the sport/fan engagement angel from something that was new unique and fun. I am sure somehow people thought that they were going to make money with this because that is what people do but Chiliz did what they could to tamper down and prevent that. I mean you could even "find" fan tokens in the wild.
Yet after the successful launch into the US, Chiliz which has a huge partnership with a ton of Premier League Teams and all sorts of other soccer and gaming and I think basketball teams even as partners the SEC went after them for being an investment product. Instead of engaging with the company and learning Gensler just slapped them with a lawsuit. I'm not sure if you are aware but I want to say it was earlier this summer two huge people from the SEC left over his failure to engage with these various companies to understand or even give them an opportunity to register with the SEC.
We saw in a hearing last week that while he claims that there is a way for these firms to register and "come into compliance" no one has been able to because the SEC has been both changing what they want as well as just issuing denials but not saying why it was denied. The witness from Robinhood was a former big SEC person and he even said no one will tell us what is wrong why we can't register and when we ask questions they don't have responses.
You cannot run a vital regulatory agency like this. Much like AI the genie is out of the bottle here and you need/must take a commonsense layered approach. This starts by engaging the industry and giving them the pathway to become a compliment because if you don't you just end up with FTX like situation where they just go right outside US jurisdiction and create a house of cards and leave a lot of US citizens holding the bag when it all falls.
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I think he doesn't have the manpower or finances to challenge tens of thousands of projects so the best he is hoping to do is to slow the industry down. Personally I say let idiots get wrecked and this fake industry will just die but if you are supposed to be trying to protect investors letting them all get defrauded and scammed is probably not good for your career.
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So he has gotten huge funding boosts since 2021 specifically for hiring. In 2022 for instance they received $210 million to hire which at the time took their budget to almost $2 billion.
The numbers though that they are giving us in the House as awful when you look at return on investment. Last year with a $193 million boost to $2.4 billion they added a whopping 83 people. The agency has THREE headquarters in Washington, DC alone and spent 5% of their 2023 budget on offices. These offices esp in DC are huge and workers are still hybrid and even Gensler has said they don’t have the level of occupancy required by law to have these buildings used.
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I did stumble across that when he testified before the Senate in 2023 he asked for $39.6 million “on buildout and move related costs for the replacement lease of our Atlanta office”. They are almost moving to vacate one of their DC HQ’s the building was 210,000 ft and was costing $14 mil a year.
In 2019 as well it turns out Congress gave them $200 million extra which idk where it went but based off his management not into people as the staff only grew 3% since 2019.
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