KEY POINTS
- Some crypto users are urging Gensler to step down before he gets fired
- Others said they look forward to him dodging lawmakers' questions as he did in the past
- Rep. Emmer, who has expressed support for crypto, said he is looking forward to grilling Gensler
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is due to appear before the House of Representatives' Financial Services Committee, but hours before his testimony at the oversight hearing, the cryptocurrency industry's "nemesis" is already getting bad vibes from the crypto community.
Gensler has been on the receiving end of negativity in recent years from crypto users, but things have gone a notch higher earlier this year as a growing number of lawmakers have been questioning his leadership and the SEC's regulatory approach toward digital assets.
An 'Opportunity' To Step Down?
As soon as the SEC chief announced his congressional appearances this week on X, crypto users on the platform gathered in the comments section to share their thoughts.
This week I’ll be testifying before Congress.
— Gary Gensler (@GaryGensler) September 23, 2024
On Sept 24th I’ll be testifying along with my fellow Commissioners before @FinancialCmte @FSCDems: https://t.co/tQiAleclca
On Sept 25th I’ll be testifying before @BankingGOP @SenateBanking: https://t.co/NaVuMV3M8K
Non-fungible token (NFT) collector Medic Matt said an appearance at Congress would be a "great opportunity to resign," echoing some calls from the community for Gensler to leave the SEC chairmanship to someone more capable.
Prominent crypto researcher Anderson said he is looking forward to watching Gensler "not answering any question whatsoever and just waste everyone's time."
Looking forward to you not answering any question whatsoever and just waste everyone's time. 👍
— Anders 🏁🌏 (@X__Anderson) September 23, 2024
Don't forget your cliff notes:
- I'm protecting investors.
- The laws are clear.
- They need to come in to register.
- Space is full of fraud.
ps: Don't mention you met with SBF.
Anderson was referring to a 2023 hearing wherein Gensler repeatedly refused to answer lawmakers' questions regarding Ethereum's status as a security or a commodity.
Crypto YouTuber James Rule asked whether Sen. Elizabeth Warren, D-Mass., will be "scripting the answers" for Gensler. Warren and Gensler have been accused of purposefully working toward the destruction of the crypto industry.
Will @SenWarren be scripting the answers for you? It’s time to retire or be fired. pic.twitter.com/6ro3tWW0Pw
— James Rule XRP 👊😎 (@RuleXRP) September 23, 2024
Crypto investor and developer Leon Gaban said the SEC should just be shut down. "Quit now, before you get fired later," he urged Gensler, whom Republican presidential candidate Donald Trump said he will fire on his first day if elected in November.
Your entire regulatory agency should be SHUT DOWN.
— LE◎N (@leongaban) September 23, 2024
Quit now, before you get fired later.
One user said Gensler wouldn't be anywhere near Congress or at the mercy of proclaimed pro-crypto lawmakers if the SEC, under his leadership, "didn't sue Ripple."
You wouldn’t be there if you didn’t sue #Ripple. You still have free pass options, take the $125m and let #XRP alone.
— CryptoMarine (@CryptoINkilo) September 23, 2024
The SEC filed a lawsuit against digital assets payment protocol Ripple over the latter's alleged sales of unregistered token securities. Since the 2020 lawsuit, Ripple fought the SEC hard in court and last month, the legal scuffle ended with a $125 million civil penalty on the company behind the XRP cryptocurrency.
While the penalty was on Ripple, many experts believe the SEC lost the battle, since the Wall Street regulator wanted a staggering $2 billion fine against the fintech giant.
Crypto analyst Jonathan Morgan reminded Gensler that his "Democrat allies" can no longer "malign" the crypto industry due to its massive growth that an increasing number of Republican politicians have acknowledged.
"They're going to throw you under the bus because it's politically expedient to distance themselves from your war against crypto," Morgan said.
Lawmaker Seeks Accountability
House Republican Majority Whip Tom Emmer of Minnesota reposted Gensler's announcement of his Congress testimony schedule. "Looking forward to holding your feet to the fire," Emmer wrote, using #FireGaryGensler.
Looking forward to holding your feet to the fire. #FireGaryGensler https://t.co/H6E6Aq7Pdc
— Tom Emmer (@GOPMajorityWhip) September 23, 2024
Emmer's statements were made just days after he, alongside Rep. Patrick McHenry, R-N.C., who chairs the House Financial Services Committee, pressed Gensler to provide regulatory clarity on airdropped tokens.
"The SEC's approach during your time as Chair has only ensured that the next iteration of the internet is not designed by Americans or with American values, which is not to the benefit of our constituents," they wrote in a letter last week.
Aside from his House hearing appearance, Gensler will also testify at the Senate's Banking, Housing, and Urban Affairs Committee hearing Wednesday.
