But the attacks on Gensler have been met with intense pushback from other industry observers who stress a different argument: The FTX crash actually proves that Gensler’s approach to crypto was correct. By embracing what the crypto industry denounced as unreasonable and rigid policies, Gensler actually minimized the harm the FTX meltdown had on U.S. consumers, they argue.
John Reed Stark, a staunch crypto critic and founding chief of the SEC’s Office of Internet Enforcement, said Gensler “saved millions, perhaps even billions, in investor crypto-losses” by taking on the industry “despite mammoth political opposition and rogue defendants with infinite financial resources.”
Marc Fagel, former SEC regional director for San Francisco who has represented crypto companies in his private practice, downplayed speculation that the SEC colluded with FTX simply because Gensler’s staff had meetings with the company.
“Plenty of players in the crypto industry have met with various members of the SEC,” Fagel told Protocol. “Indeed, I would be a little worried if the SEC didn’t take meetings with players as large as this.”
‘Enforcement 40’ for 2020
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