Lyman shares insights to help crypto enthusiasts get inside the mind of Gary Gensler.
Forbes Contributor Sam Lyman, who once said the XRP army is carrying all of crypto on its back, has released an op-ed article about SEC Chair Gary Gensler.
The article, which is titled Crypto War: The Secrets Behind Gary Gensler’s SEC Strategy, tends to enable crypto community members to “get inside the mind” of the commission’s Chairman.
"Gensler’s attack on digital assets poses an existential threat to the industry. But for him, it may well be just a stepping stone on the path to higher office."
— Sam Lyman (@SamLyman33) June 18, 2023
Gensler’s Shifting Stance on Crypto
Lyman pointed out Gensler’s contrary views about cryptocurrencies before he was appointed as SEC chairman and when he eventually became the commission’s boss.
According to Lyman, Gensler once noted in 2018, when he was chair of the Maryland Financial Consumer Protection Commission, that three-quarter of the crypto market is not securities. Per Lyman, Gensler was referring to bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH) as non-securities.
However, Gensler’s position has changed since he became the Chairman of the SEC, as he reiterates that “everything other than bitcoin” is a security.
Lyman asserted that Gensler is not “a run-of-the-mill regulator” but “a wily political operator and a media maven” following the timing and substance of SEC’s enforcement actions against crypto.
Gensler’s Political Maneuvering and Media Usage
Gensler has been skillful in political maneuvering in large corporations since an early age. The Forbes Contributor pointed out that at just 30 years of age, Gensler became a partner at Goldman Sachs.
Following a successful stint on Wall Street, Gensler served as Assistant Secretary for Financial Markets at US Treasury Department under President Bill Clinton, where he acquired initial knowledge in policy making.
According to Lyman, Gensler has acquired substantial knowledge over the years, adding that the SEC boss knows how to play the media better than any agency head in Washington.
“To use his own words, the crypto industry is teeming with ‘Hucksters.’ Fraudsters. Scam artists. Ponzi schemes.’ And he has launched a PR and legal assault against the industry to drive that point home,” said Lyman.
He noted that the SEC suing Kim Kardashian last fall was Gensler’s way of making headlines for a niche policy issue. Since the SEC’s lawsuit against Kim Kardashian, Lyman noted that Gensler has been able to command the mainstream narrative about crypto.
Congress Rendered Powerless
The Forbes Contributor asserts that Congress has been rendered powerless at stopping Gensler. Lyman noted that Gensler is quick to read Congress’ offense, and he makes significant moves to shut it down.
A case in point was the SEC’s lawsuits against Binance and Coinbase, which Lyman believes was Gensler’s response to the House of Representatives draft of the McHenry-Thompson bill.
Crypto- An Easy Target
Despite overseeing a capital market of over $40 trillion, SEC’s enforcement actions under the leadership of Gensler have been directed at crypto, valued at around $1.1 trillion.
Per Lyman, crypto has become an easy target for Congress and federal agencies like the SEC because it does not have the lobbying power of traditional financial institutions.
Gensler has built a reputation for himself as a no-nonsense regulator. Notably, Gensler has also built strong relationships with members of the House and Senate, including Senator Elizabeth Warren and Corey Frank.
“If policy is like painting, then Gensler is a Picasso. The media is his brush, and Congress is his canvas,” Lyman added.
Although Gensler’s stringent policies pose a significant threat to the crypto market, the SEC boss believes the move might set him on the right path to a higher office in the Joe Biden administration or the next.
Deaton Urges XRP Community to Follow Lyman
As expected, Lyman’s op-ed article stirred reactions among cryptocurrency enthusiasts. Prominent lawyer and cryptocurrency advocate John Deaton described the piece as “outstanding,”
He further urged XRP community members to follow Lyman on Twitter.
— John E Deaton (@JohnEDeaton1) June 18, 2023
It is worth noting that Lyman had previously heaped praise on XRP community members. Last month, he said the XRP community is carrying all of crypto on its back regarding regulation.
According to Lyman, if Ripple wins its case against the SEC, the victory would provide a legal precedent that could eventually protect the industry from the commission’s overreach.