Gensler's SEC Grilling: Congress Exposes Crypto Charades and Hidden Agendas
Abraham George Crypto Musings
The SEC Chairman Gary Gensler faced a fiery grilling in Congress yesterday. Most anticipated it, and virtually every congressperson was on their toes, barring a few missteps from the likes of Maxine Waters and Brad Sherman.
So, what did the public gain from this drama? While Gensler's decisions haven't faced any backlash yet, it's evident that Congress is realizing the havoc this one bureaucrat might wreak on the nation.
Gensler's motives are clear. No matter how much criticism is thrown his way, he stands firm, often with a smirk. Accusations? He just shrugs them off. To me, he appears to have a designed scheme to favor the established players, maybe even orchestrating a crypto dip, letting big financial corporations swoop in and buy low.
His issues with spot ETFs are puzzling, especially when the SEC has already greenlit numerous Bitcoin ETF futures contracts trading on CFTC-regulated exchanges. Perhaps he believes the futures market's shorting capability will lead to a downturn, presenting the perfect buying opportunity for the big players?
Crypto has seen its fair share of scams. But instead of curbing them early, Gensler seems content to let them grow, fester, then collapse. Only then does he step in with regulations, painting the whole sector as a den of tricksters and manipulation.
He parrots his claim of caring for the public harmed by crypto losses. But that charade is too transparent. And yet, he doesn't hesitate to go after well-established, compliant firms like Ripple and Coinbase.
Congressional figures like Ritchie Torres, Warren Davidson, Tom Emmers, Patrick McHenry, Byron Donald, and others didn't hold back in their questioning. They seemed united in their mission to expose Gensler's missteps.
Tom Emmers dubbed Gensler's tactics as "regulation by harassment." Patrick McHenry, usually composed, lost his cool, pointing out Gensler's repeated failures and defiance. He even hinted at a subpoena for Gensler, noting the long-lasting impact it could have on the SEC's reputation.
One overlooked question: Gensler's stance on the court's ruling that XRP isn't a security. Rumors swirl about Gensler's links with Sam Bankman-Fried. How deep does their association run?
The latest hearing has ripped the veil off Gensler's actions. Congress might want him out of the SEC, but presidential appointments aren't easily overridden. Still, his continued tenure could spell disaster for the industry.
It's worth noting that judges observe these congressional dramas, likely influencing their decisions in court.
For further details, I've attached a video from a crypto commentator covering the congressional hearing highlights. The segment featuring Patrick McHenry, Chairman of the Financial Services Committee, is particularly illuminating.
I've long warned of Gensler's questionable tactics and intentions. To me, he's more about personal agendas than genuine national interest.
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Abraham George is a seasoned investment manager with more than 40 years of experience in trading & investment and multi-billion dollar portfolio management spanning diverse environments like banks (HSBC, ADCB), sovereign wealth fund (ADIA), a royal family office, and a hedge fund.