"The internet doesn't die, and videos made in the past can still cause a stir nowadays, and someone should notify the SEC Chairman, Gary Gensler."
Yesterday I published an article in which the current president of the American securities regulatory agency, still as a professor, categorically states that 3/4 of the market are not securities, but commodities, and therefore not subject to scrutiny by the Securities Exchange Commission. And today, a new video shared by the same user on Twitter - 🦈@ZK_shark brings up a new topic about "good old guy" Gary Gensler, not the regulator but the professor, where he discusses Zcash.
In the conversation, the current Chairman of the Securities and Exchange Commission talks with the co-founder of the privacy and anonymity coin Zcash, Madars Virza, and in a cheerful and friendly tone, asks what led him to create a coin that enforcement men do not appreciate, but which for him (Gary Gensler) is legal, after all it is a coin and it is real. The exact words that the chairman cites in the conversation after the long dialogue are as follows:
- ... "And it's legal. I mean, it's a coin. It's real." - Gary Gensler, referring to Zcash.
Therefore, Gary Gensler's opinion today may have changed regarding many things in the crypto space, and as a senior employee of the American regulatory agency, he has a different approach to the ecosystem, but he knows what he is talking about and knows that Zcash as well as other cryptocurrencies are real and not securities, and therefore cannot be subject to scrutiny by the regulator. Gensler, who has been harshly criticized for his current approach to the crypto market, has had a better view of the decentralized space in the past, and the many videos circulating on the internet can prove that.
As a regulator, the Securities and Exchange Commission has the role of legislating and the task of monitoring and controlling so that industries operating in the crypto space work within the law. However, there are some issues that are causing a stir among participants and companies in this space, mainly because the regulation is not clear, according to them.
This lack of clarity on the regulator's part has created noise between the Securities and Exchange Commission and industries operating in the market, and one of them is Coinbase, which went further by taking the regulator to court demanding that the regulator respond to a petition the American giant brought last year requesting a yes or no from the agency.
The tension is increasing between the regulator, the industries operating in the market, and the divergent public opinion. While some view the regulator's actions favorably, another half disagrees, as they believe that the agency must first clarify the regulations and only then enforce the law, punishing those caught in violation with harsh penalties from the regulator.
Still, it must be agreed that the regulator's intransigence may lead to a mass exodus of industries operating in the United States to more crypto-friendly regions, resulting in the space losing a strong market for cryptocurrency development. America is a crypto hub, and this status may be lost if the securities market regulator continues to blaze the trail in search of companies that traded securities at some point, some knowingly, and some in error. After all, the Howey test can be complex, and this is where the SEC is invited to develop clearer regulations.
In conclusion, although Gary Gensler, the current chairman of the Securities and Exchange Commission, is familiar with the privacy and anonymity currency Zcash and acknowledges that it is a real currency, as it does exist, there is still much that the market needs to clarify, and as such, a more elaborate law should govern the crypto market. I believe that Coinbase has the right to even sue the regulator if it believes that the entity is hindering its business, as the giant exchange conducts 80% of all business in the American territory.
However, this approach may also be a way to gain time and appeal to public opinion to get involved in the debate, and Coinbase knows this and has already begun searching for a new headquarters if things sour with the regulator. Licenses have already been acquired, at least in Bermuda, and another is on the way in Abu Dhabi, but these markets will hardly have the same track record as North America.
As this uncertainty permeates the ecosystem and there is a lot of uncertainty in the air, one thing is certain! Gary Gensler knows the crypto market and even appreciates it.
Stay tuned for more articles in which I bring more videos involving the current SEC boss and the current market controversy. And now, what do you think of Gary Gensler's new video?
