SEC Chairman Warns of Rampant Violations in the Cryptocurrency Industry, Community Annotations on Tweets: Enforcement and Regulation Only
SEC Chairman Gary Gensler suddenly shared a previous interview clip from CNBC on Twitter on the 22nd, emphasizing the numerous violations in the cryptocurrency field. Embarrassingly, Twitter’s community notes were added below Gensler’s tweet, stating that the SEC only enforces regulations instead of overseeing them.
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Gary Gensler: Violating Crypto Companies Will Only Queue in Bankruptcy Courts
Twitter’s Community Notes Refute: SEC Only Enforces Regulation
Gensler’s tweet stated that there are many violations in the cryptocurrency field, and when many people are harmed, the only thing they can do is stand in line in bankruptcy court. This weakens confidence and may make it difficult for other honest participants to compete.
He quoted his previous statement on CNBC, stating that securities laws can assist investors in information disclosure, making investment decisions, and protecting investors from fraud and market manipulation. Gensler said:
There are too many bad actors, scams in the crypto field. It’s truly a global wild west.
Embarrassingly, Twitter’s community notes feature noted below Gensler’s tweet that the SEC only enforces regulations instead of overseeing them.
(Vitalik’s insightful analysis of Twitter’s fact-checking tool, even Musk praised it, what is Community Notes?)
Twitter’s Community Notes Refute: SEC Only Enforces Regulation
Community Notes pointed out:
Cryptocurrency companies like Coinbase (a publicly listed company regulated by the SEC) have been working hard to clarify the SEC’s compliance guidance in recent years. However, the SEC has not taken a clear position and relies on enforcement for oversight.
Although Gensler is often criticized, the cryptocurrency community may be fortunate that during his tenure, he approved Bitcoin futures ETF, which was previously blocked as a spot ETF due to “market manipulation.” It now has the potential to pass.
Check out the 13 ETF review deadlines at once:
(Bitcoin Spot ETF Update: SEC Holds Intensive Meetings with BlackRock and Others, Still Optimistic about Approval Deadline on January 10)
Gary Gensler
SEC
Bankruptcy Court
Community Notes
Further reading:
Twitter (now X) under investigation by the EU for suspected violation of Digital Services Act and spreading false information
To combat sensational false information, Musk: Tweets annotated with Community Notes will not generate revenue.
