The crypto community recently experienced a massive backlash following a tweet by Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC). Gensler's tweet was in response to the SEC's announcement that it had charged crypto trading platform Bittrex Inc., its co-founder and former CEO William Shihara and its foreign affiliate, Bittrex Global GmbH, with various regulatory violations.
In his tweet, Gensler commented, "Today's action, yet again, makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity." The SEC's charges against Bittrex include operating an unregistered securities exchange, broker and clearing agency.
However, Gensler's statement sparked outrage among many in the crypto community, who argued that the primary issue in the space is a lack of clear regulations. They asserted that Bittrex should not be considered a securities exchange, as it primarily facilitates the trading of digital assets. Some users even questioned whether all exchanges could now be considered securities exchanges, given the SEC's approach to Bittrex.
Several comments on Gensler's tweet highlighted the need for regulatory clarity in the rapidly evolving world of cryptocurrencies. One user asked, "Which of the top 10 coins are securities?" stating that the industry needs more regulatory clarity.
Another comment pointed out the need for the SEC to update its rules and approaches to keep pace with technological advancements and evolving business models. A user questioned Gensler, "Who was protected though, Gary?"
Critics of the SEC's actions emphasized that trying to apply outdated laws to modern technology is counterproductive and only serves to stifle innovation. One user encouraged Gensler to think about the future, stating, "Throttling technology only moves it abroad. Zoom ahead 5 years and think about your reputation. Future thinking, Gary."