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    Gary Gensler: A Wolf in Sheep’s Clothing?

     

    Lado Okhotnikov - Gary is not the person

    If you hear a promise to create a fair market where investors can multiply their capital, then you will probably think of Gary Gensler, the Chairman of the US Securities and Exchange Commission. However, there are doubts about the truth of his intentions and hidden motives. Some critics argue that Gensler’s actions are aimed at undermining trust and creating constant tension. The question arises: is Gary really a true advocate for the participants’ interests and the development of the cryptocurrency industry or is he covering his own motives under the guise of regulation?

    Under the pretext of creating a fair market, it is seen how Gensler receives the support and recognition of the state apparatus. But among colleagues there are those who see something contradictory in his actions. They argue that behind the calls for justice lies a desire for control and manipulation. Gensler creates an uncomfortable environment that leads to uncertainty and uncertainty in the financial market.

    Critics point out that Gensler’s actions are detrimental to investors, thereby limiting the development of the cryptocurrency industry. Instead of encouraging innovation and supporting the free market its regulatory measures violate the “decentralization” rule which is contrary to the very essence of cryptocurrencies.

    You Can’t Make an Omelet Without Egg Breaking

    In recent months alone several exchanges have collapsed, dozens of complaints have been filed and that’s not to mention the uncertainty panic that the SEC is creating. A vivid example of the past days was two lawsuits from the Securities and Exchange Commission against Binance and Coinbase. These lawsuits caused outrage which raised questions about the role and goals of Gary Gensler.

    Critics claim that his actions are aimed at discrediting and restricting cryptocurrency exchanges. Recent events serve only to confirm their arguments. This negative trend raises doubts about how much Gensler is actually interested in supporting and developing the cryptocurrency industry.

    Some see these lawsuits and regulatory actions as Gensler’s hidden agenda: to take control of the industry, dampen competition and take over blockchain technology. Such accusations raise a number of questions about the transparency of his intentions and the consequences that such actions may entail.

    The recent news “Crypto Whale Withdraws $15 Million From Binance – Market Impact Looms”, — demonstrates the departure of major players into the shadows in order not to attract the SEC’s attention.

    Why such a clear position, emphasizing the need to control cryptocurrency without any exceptions? What was the reason for such a pragmatic view?

    Who are you, Gary?

    Lado Okhotnikov - Gary is not the person

    How the hell do you do it?

    The current head of the SEC Gary Gensler has a lot of experience behind him. Born and raised in a Jewish family, he remembers his childhood as filled with love and support from his parents. He has four siblings with whom he maintains close ties. His elder brother Robert was especially close to Gary with whom he shares common values and aspirations. They even managed to work together on Wall Street after which Gary moved to the civil service.

    Surprisingly, Gensler is one of the few who started at the renowned financial institution Goldman Sachs at the age of 16. This was rare at the time as the laws and restrictions on underage employment made it very difficult to get a job at such a prestigious bank. However, this was the starting point in his career.

    Achievements

    Gensler is an “outstanding graduate” of Pikesville High School. He holds an honors degree in economics and an MBA. This gave him a boost in his career, thanks to which Gary entered the board of directors of the commercial university Strayer Education, Inc.

    Then he got a job at Goldman Sachs. Here the young financier met his future wife who also worked as an analyst for the company. Their common interests, professional interest and mutual understanding led to family happiness.

    Now Gary has two children: a girl named Lauren and a boy named Josh. Family values and connections remain for Gensler one of the most important aspects of his life which give him inspiration and support in all endeavors.

    Wall Street: Gensler Overtakes Goldman Sachs and Morgan Stanley

    Gary Gensler, the head of the SEC, is deservedly recognized as one of the most powerful people on Wall Street. The honorary title came from Bloomberg Markets Magazine which included Gensler in the list of “The 50 Most Influential People on Wall Street”. It is interesting to note that Gary ranked 16th in this prestigious list ahead of the directors of such financial giants as Goldman Sachs and Morgan Stanley.

    This recognition is a reflection of the degree of influence that Gary has in the financial world. His expertise and experience in the financial markets as well as his regulatory work with the SEC has attracted attention and recognition from industry professionals.

    Middle age crisis

    After leaving Goldman Sachs Gensler entered another milestone in his career. Having become a chairman of the Futures and Options Trading Commission (CFTC) he has been active in oversight, working to strengthen the transparency and soundness of financial markets.

    During his tenure important steps were taken to protect investors and maintain the integrity of financial transactions. Based on his knowledge and experience Gary Gensler has made a significant contribution to the development and implementation of regulatory policies aimed at reducing risks and ensuring stability in the stock market.

    But at some point something went wrong and Gary seemed to go crazy. Maybe he overestimated his abilities or met with unforeseen difficulties, it is not yet clear.

    Gensler took on the job of Undersecretary of the Treasury for Home Affairs and Deputy Director of the Economic Cooperation Department during the Obama presidency. These positions required him to coordinate the work of more than a dozen agencies including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the Department of Housing and Urban Development’s Office of Federal Housing Supervision (OFHEO).

    Perhaps such a workload made itself felt and there was a “click” in his mind: why not to drown the new promising blockchain technology in fear and chaos?

    Although Gary held respectable positions that required a special skill level from him the idea of strict regulation did not leave him.

    Gensler’s latent cryptophobia

    Against the backdrop of dizzying success Gensler’s mind has changed. In his role Gary has rewritten the rules of derivatives trading. He has taken ambitious steps to change the established traditions that govern this multi-million dollar market.

    There were times when the Obama administration being under institutional pressure considered the possibility of canceling the new rules, fearing that they would incur significant costs and alienate investors. However, Gensler resisted such pressure and managed to defend his reforms. And instead of returning to an unregulated scheme he continued to advocate the introduction of strict regulations and supervision in the derivatives market.

    Gary also successfully opposed the idea of merging the CFTC with the SEC. Instead, he pushed for an expansion of the CFTC’s powers under the Dodd-Frank Act, passed in 2010. This allowed the Commodity Futures Trading Commission to more effectively regulate the derivatives market and ensure its stability.

    Lado Okhotnikov: Is Gary Gensler an Ideal of Justice or a Tool of Manipulation?

    “Fairness should be the cornerstone of all financial markets,” – once said Gary Gensler, former chairman of the Commodity Futures Trading Commission (CFTC) and current head of the SEC. His assertion of the fairness priority has attracted the attention of investors, regulators and the public. However, as he influenced the financial markets, the questions arose as to how much Gensler is the ideal of justice, or is he still a tool of manipulation in the hands of powerful people?

    I will say that at first glance his achievements in the field of financial regulation seem impressive.He was one of the main architects of the new derivatives market hierarchy, and his work at the CFTC led to a revision of many standards and practices in this area.

    But there are motives which are hidden behind these achievements. Not everything is as smooth in Gensler’s career as it seems at first glance. His name has been in the spotlight more than once. In the recent past there have been accusations of his connections with large financial institutions and lobbying for their interests. Some critics argue that his regulatory actions have a hidden motive to manipulate in favor of certain players.

    Adam Cochran, a partner at venture company Cinneamhain Ventures, expressed his distrust of Gary Gensler calling him “an agent included in the anti-cryptocurrency program.”He also questioned why the same standards were not applied to FTX, an exchange that suffered a crash.

    1/2

    So the SEC got buddy-buddy with SBF and almost gave them an exception to offer more services in the US.

    But then goes after Kraken and Coinbase, the two most compliant US exchanges for services that the SEC previously refused to provide guidance on?

    — Adam Cochran (adamscochran.eth) (@adamscochran) February 9, 2023

    An important moment in his career was the attempt to merge the CFTC with the SEC – the Securities and Exchange Commission.While some saw this initiative as a chance to be strengthened by consolidating two powerful bodies the others suspected it could lead to a loss of independence and a greater concentration of power in Gary’s hands.

    Gensler faced criticism during his speech in the US House of Representatives, it concerned the department’s position on cryptocurrencies.Particular attention was paid to issues related to the recognition of Ethereum as a security, the regulation of stablecoins and the situation around the FTX exchange.

    Prior to the hearing the lawmakers released an open letter with SEC criticism because of the absence of clear rules for crypto companies.

    “Without clear rules of the road, your push for firms to ‘come in and register’ is a willful misrepresentation of the SEC’s non-existent registration process,” the letter states. “The only entity to blame for the lack of registrants is the SEC itself.”

    Recently, a significant number of accusations have accumulated where Gensler and Co. is accused of excessive pressure on the crypto industry. Only these headlines show the attitude of the community towards the regulator.

    • “SEC boss faces ethics scrutiny over Sam Bankman-Fried powwow».
    • “Wall Street lines up against SEC chair Gary Gensler on one of his most controversial proposals».
    • “Republicans investigate SEC role in Bankman-Fried arrest”.
    • “US cracks down on crypto industry with flurry of actions”.

    Criticism addressed to Gensler is gaining momentum every day.The tension from his actions only grows.The situation will certainly reach its climax and the public will see who is right and who is wrong.

    I do not rule out that given the current dynamics, perhaps in the fall, we will see the outcome of current events. Of course, this can lead to increased volatility in the market and a change in the current trend for the worse but I know one thing – after the storm, clear days are sure to come.

    In Conclusion

    The story around Gary Gensler and the SEC continues to heat up, drawing more and more criticism from the public. Questions about the cryptocurrencies regulation, the recognition of Ethereum as a security as well as the situation with FTX caused serious controversy. However, in the face of increasing pressure and tension, hopes for a situation defuse do not leave alone because this is a direct path to consensus.

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