Outside Source
Trader Peter Brandt has expressed doubts over Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), and the agency’s ability to adequately safeguard investors.
Brandt highlighted on social media Gensler’s involvement in the MF Global bankruptcy. Gensler, Brandt says, allowed the mingling of customer funds.
He also called out Gensler for his time as chair of the Commodity Futures Trading Commission (CFTC) during the bankruptcy of Peregrine Financial.
Read Brandt’s comments below.
Gensler served as CFTC chair in the years following the 2008 financial crisis. From May 2009 to January 2014, he was a major proponent of reforming the unregulated swaps market, which devastated companies like AIG and Lehman Brothers.
Brandt has rage-tweeted about Gensler, MF Global and Peregrine before:
And Brandt is just one of many crypto enthusiasts routinely criticizing Gensler, who is notoriously strict in regulating the crypto market.
In 2011, Gensler found himself entangled in the aftermath of the MF Global bankruptcy, a pivotal event in the financial world.
MF Global, a significant player in finance, filed for bankruptcy following a series of high-risk trades that left a $1.2 billion hole in customer funds.
Gensler’s actions leading up to the bankruptcy and his subsequent response faced intense scrutiny and criticism.
Following MF Global’s bankruptcy filing on Oct. 31, 2011, Gensler opted to step back from the CFTC’s investigation. His decision stemmed from his prior professional ties with Jon Corzine, the former CEO of MF Global, who had worked alongside Gensler during their time at Goldman Sachs Group Inc. in the 1990s.
However, Gensler defended himself before the Senate Agriculture Committee, explaining that he refrained from recusal initially but took the step as soon as the CFTC started preparing for potential civil and criminal charges.
He informed the lawmakers that legal advisers assured him there were no legal or ethical reasons to recuse himself, but he opted to do so anyway to avoid potential distractions in the media and press.
Apart from the MF Global saga, Gensler has been the recipient of GOP vitriol. Last year, for example, House GOP Whip Tom Emmer reaffirmed backing for a bill aimed at removing Gensler from his post at the SEC.
The bill was introduced by Republican Representative Warren Davidson. It was a response to Gensler’s regulatory stance on crypto, which has been seen as overly restrictive by some in the industry.
Another instance involves Ripple CEO Brad Garlinghouse, who challenged the SEC’s authority over cryptocurrencies and asserted that the agency strayed from its investor protection mandate.
Numerous members of Congress have also voiced criticism against Gensler due to the ambiguity surrounding the watchdog’s strategy for regulating cryptocurrencies. They raised apprehensions regarding the potential repercussions of the agency’s decisions on both innovation and consumer safeguarding.
Gensler, meanwhile, continues to push for increased funding in order to better oversee the cryptocurrency sector.
Garlinghouse
This article first appeared at crypto.news
