Economic Liberties argues that Gensler got crypto right

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Washington, DC The American Economic Liberties Project released a new Quick Take policy today, Gary Gensler Got It Right, highlighting how Securities & Exchange Commission (SEC) Chairman Gensler helped contain the crypto meltdown and protect the real economy from its effects. The release comes with scheduled House and Senate hearings this week to examine the decline of crypto firm FTX, and as government regulators step up efforts to tackle corporate power.

Since the fall of FTX last month, crypto proponents have tried to blame the collapse on SEC Chairman Gary Gensler instead of the industry’s own actions, a move intended to undermine a strong regulation, said Matt Stoller, director of research at American Economic Liberties. Project. An honest look at Chairman Gensler’s record reveals how his agency has insulated much of the real economy from the destructive nature of the unregulated crypto space. Under Gensler, the SEC forced banks to account for crypto assets, blocked the creation of Bitcoin Spot Exchange-Traded funds, halted the sale of some subprime lending products, and blocked most crypto firms from accessing to public markets.

Gensler became SEC chairman four days after Coinbase’s IPO, Stoller added. He came too late to stop crypto from booming, but his actions since taking office have been the model of a strong and effective financial regulator.

Economic Liberties’ new Quick Take examines how Chairman Gensler’s crypto actions have so far been a regulatory success, despite what crypto proponents might say. The report argues that Gensler’s actions are a prime example of a regulator standing up for the public in the face of a powerful and wealthy industry. Cryptocurrencies could have caused a general financial crisis if regulators had allowed insiders of crypto companies to access more sources of capital from consumers and investors. Had banks and investors been allowed to invest heavily in this unregulated space, these banks would have faced a liquidity crunch to cover their losses during the crypto meltdown.

Read the quick take, Gary Gensler got it right, here.

Learn more about economic freedoms here.

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The American Economic Liberties Project works to ensure that the trading system of the Americas is structured to advance, rather than undermine, economic freedom, fair trade, and secure and inclusive democracy. Economic Liberties believes that true economic freedom means that entrepreneurs and businesses, large and small, succeed through their ideas and hard work; trade empowers consumers, workers, farmers and engineers instead of subjecting them to discrimination and abuse by financiers and monopolies; foreign trade agreements support homeland security and democracy; and wealth is widely distributed to support equitable political power.

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