Senator Elizabeth Warren Accused of Colluding with SEC Chair Gary Gensler Against Cryptocurrencies
Date: 2023-12-12 Author: Dima Zakharov Categories: IN WORLD
Pre-Planned Questions Raise Eyebrows
During recent Senate hearings on cryptocurrencies, John Deaton, an attorney representing cryptocurrency companies, expressed his dismay at the seemingly pre-planned questions posed to the SEC Chair, Gary Gensler. Deaton argues that Senator Elizabeth Warren, who was tasked with overseeing the SEC, violated her oath as a member of the upper house of Congress. He points out that a Fox News report reveals evidence that the Democratic senator had prepared Gensler for the hearings in advance.
Emails Reveal Coordination
A television segment discussed emails obtained from Warren's office, shedding light on the situation. These emails clearly show that a senior economic advisor to the senator sent Gensler a list of questions that she intended to ask during the hearings, along with suggested answers. The advisor requested Gensler's approval of the wording of the questions to avoid any awkward situations during the hearings. Remarkably, during the hearings, Senator Warren asked questions that closely mirrored those from the email, as explicitly shown in the television segment.
Fake Testimony Accusations
John Deaton strongly criticized this situation, stating, "This is not oversight; these are fake and pre-planned testimonies before Congress. She literally said she didn't want to put Gensler in an awkward position. Yet, her job is precisely to ask the SEC Chair tough or challenging questions!" Deaton's disapproval centers on the fact that Senator Warren did not inquire about the former CEO of the troubled cryptocurrency exchange FTX, Sam Bankman-Fried. He questions why Warren did not press Gensler on allowing fraud to occur at FTX, despite his numerous meetings with Bankman-Fried.
Lack of Action on Key Figures
Deaton also chastised the SEC for its lack of engagement with Brian Armstrong, the CEO of the American cryptocurrency exchange Coinbase, and its chief legal officer, Paul Grewal. This criticism comes despite Coinbase's persistent efforts to engage with regulators. Deaton expressed frustration, saying, "Warren preaches against cryptocurrencies at every opportunity but doesn't question why Gensler turned a blind eye to FTX, Celsius Network, Luna/UST. She found time to help kill a couple of banks working with crypto companies. Why not focus on the root of the problem: actual fraud?"
Previous Suspicions of SEC Collusion
This is not the first time the SEC has faced allegations of collusion with cryptocurrency entities. In July, the Blockchain Association, a civil liberties group, suspected the SEC of conspiring with the cryptocurrency company Prometheum, which had obtained a special broker-dealer license. The association claimed that such collusion hinders regulatory clarity in the cryptocurrency space.
The unfolding events surrounding Senator Elizabeth Warren's alleged collusion with the SEC Chair have raised significant concerns within the cryptocurrency community and have added to the ongoing debate about the regulation of cryptocurrencies in the United States.
