The media accused Gary Gensler of turning the SEC into a “banana republic”

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Garry Gensler-min

Chapter SEC Gary Gensler deserves a place in the Banana Republic Hall of Fame. Journalists from the New York Post came to this conclusion.

The publication drew parallels between the department’s policies and the corrupt dictators of peripheral countries who control the economy and imprison their opponents.

Journalists justified such accusations by the SEC’s chosen line of regulating the crypto industry through law enforcement.

Additional criticism has come from Gensler’s push to change decades-old securities laws by expanding disclosure. The department proposed including data on how companies are fighting climate change and implementing other progressive policy goals.

Gensler is positioned as the “sheriff of Wall Street,” but he ignored the obvious pump and dump in meme stocks, which deprived a generation of small investors of their savings, the New York Post continued.

Journalists have strengthened their opinion that the SEC can be associated with a “banana republic” after the prosecution of HFT market maker Virtu due to accounting violations, which are presented as the “crime of the century.”

The publication noted that the company is headed by Doug Cifu, an outspoken critic of the agency’s head.

Thanks to Virtu’s purchase of data feeds, brokers like Charles Schwab and E*TRADE were able to reduce commissions for investors, and Robinhood completely eliminated them. Unlike other top Wall Street executives, Sifu has always been open to revealing the mechanics of the market, journalists emphasized.

This position made Sifu uncomfortable with Gensler, who had “grand plans to restructure the stock market.” This was necessary to score points at the expense of such Wall Street-hating politicians as the powerful Senator Elizabeth Warren.”

According to the publication, Sifu openly told the head of the SEC that because of his line, investors could find themselves in a difficult position – he is trying to “put in order” what is already “working well.” As a result, in September the Commission “identified irregularities” in the work of Virtu.

The New York Post calls the current attack on the company “unconvincing.” They cited an investigation into the firm in 2018-2019, which did not confirm suspicions of dishonesty.

The publication emphasized that the majority of such claims do not go to court. But not in this case, where Gensler’s desire to force the company to agree to serious criminal charges is clear.

“The case will now likely go to court, where a decision will be made on whether to allow the markets to transform into banana republic status,” – the journalists concluded.

According to BrightScope and Digital Assets Data co-founder Mike Alfred, citing one regulatory insider, Gensler told friends and advisers that he wanted to gracefully extricate himself from his “personal Vietnam.” The head of the department expressed a desire to approve one or more spot Bitcoin ETFs from large companies where he could get a job after his resignation.

User crypto_linn suggested that Blackrock asked the SEC to arrange a FUD in cryptocurrencies in order to go low and launch an ETF. After this, the Commission will soften its position, pension funds will add the asset to their products, halving will occur, monetary policy easing will begin and by June-November digital gold will reach a new ATH.

Let us recall that in September 2023, the head of the SEC confirmed his tough position on digital assets, noting their possible harm to the global financial system.

In August, US House of Representatives member Warren Davidson called for Gensler to be removed from his position as head of the agency due to the unsuccessful proceedings against Grayscale. It was preceded by the partial defeat of the regulator in the process against Ripple.

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