The crypto community does not trust the US SEC and is now looking to Congress for answers.
In a tweet yesterday, CryptoLaw, shared a petition urging crypto community members to call on US Congressional members to investigate what it described as “Gary Gensler’s official actions and possible role in what may be one of the biggest frauds in American history.”
According to the US crypto regulatory news outlet, crypto community members deserve answers.
🚨CONNECT TO CONGRESS🚨
US residents click below to write your Congressional representative and demand a full investigation of @GaryGensler’s official actions and possible role in what may be one of the biggest frauds in American history 👇🏻https://t.co/GzHabgv36z
— CryptoLaw (@CryptoLawUS) November 10, 2022
It comes as the crypto community has drawn links between FTX chief Sam Bankman-Fried and US Securities and Exchange Commission chair Gary Gensler as the world tries to unravel the FTX collapse.
CryptoLaw founder and amicus curiae on behalf of XRP holders in the SEC vs Ripple case John E. Deaton asserted in a tweet yesterday that the SEC has continued to fail in its duty to protect digital asset holders in the US. Alleging foul play, Deaton points out that Gensler met with SBF before the FTX collapse.
Meanwhile, @JagoeCapital, a Web 3 startup founder, has drawn links alleging that the Alameda Research CEO Caroline Ellison knew Gensler on personal terms. Notably, her father was the head of the department of Economics at the Massachusetts Institute Of Technology (MIT) when Gensler was still a professor at the institution.
Head of policy at FTX US, Mark Wetjen, also served under Gensler during his stint as chair of the Commodity Futures Trading Commission (CFTC), FOX Business journalist Eleanor Terret tweeted today. Wetjen played a significant role in introducing SBF to important figures in Washington, Terret says, citing unnamed sources. Notably, she also acknowledges the MIT connection.
Notably, the calls have gotten the attention of Minnesota representative Tom Emmer.
“…reports to my office allege he was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly,” Emmer tweeted. “We’re looking into this.”
As highlighted by a user, it is no idle threat, as Emmer is a member of the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets.
Despite these speculations, FTX, FTX.US, Alameda Research, and SBF are all under investigation by the US SEC, per a recent Bloomberg report. The report details that the SEC had kicked off investigations into the US arm of the crypto exchange in addition to its crypto lending activities months ago.