Gary Gensler Seeks Collaboration with CFTC To Regulate Cryptocurrencies

Crypto Users Dig up an Old Clip of Gary Gensler Praising Algorand

  •  Fox Business reporter Eleanor Terrett believes Gensler’s old comments about Algorand should be part of his questions at his upcoming hearing.
  • ALGO wasn’t released on the market until late June 2019, which was two months after Gensler’s remarks.

The United States Securities and Exchange Commission (SEC) recently tagged Algorand’s native token, ALGO, and other cryptocurrencies as unregistered securities. The news came as a shock to crypto users, who responded by floating a four-year-old video of SEC chair Gary Gensler praising Algorand.

In the now-viral clip, Gensler described Algorand as a “great technology” while considering if a “high performance” smart contract network can integrate an Uber- or Lyft-like application on its system. Some crypto users slammed Gensler for his “hypocrisy” shortly after the video circulated on social media.

Gensler’s comment on Algorand took place on April 25, 2019, while speaking at a Massachusetts Institute of Technology (MIT) “Fintech Beyond Crisis” conference. Gensler reportedly recognized his former MIT colleague and Algorand founder Silvio Micali during his speech. Prior to taking the helm of the SEC, Gensler served as a professor of global economics and management at MIT.

Fox Business reporter Eleanor Terrett believes Gensler’s old remarks about Algorand will be part of his questions at his April 18 hearing before the U.S. House Committee on Financial Services. Gensler’s attack on the crypto industry has been seen as a threat to innovation.

Some US lawmakers have slammed the SEC chair for his antics, and most recently, United States Rep. Warren Davidson introduced a bill that could remove Gensler from his position. Davidson’s decision is a reaction to what he sees as Gensler’s infringement on the digital currency industry, with the SEC’s proposed revision of the term “exchange” receiving strong opposition.

The crypto-friendly congressman tweeted,

To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director that reports to the Board (where authority resides).

In a meeting on April 14, Gensler claimed that the proposed rule changes might help investors and markets by “modernizing” the standards that define an exchange and subjecting some brokers to more regulatory scrutiny.

The SEC has been taking active enforcement actions against a number of crypto exchanges and platforms for allegedly breaking securities laws. However, some public figures in the crypto industry have accused the regulator of being unduly aggressive and hindering growth in the sector.

The long-term stability of crypto regulation, as well as Gensler’s fate, are in jeopardy as tensions between regulators and the crypto community continue to grow.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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