Meet Gary Gensler, the man who's been making tremendous waves in the world of finance. As the Chair of the U.S. Securities and Exchange Commission (SEC), he's been cracking down on crypto while also making headlines, but not always for the right reasons.

Gensler is known for his outspoken negative stance on crypto whilst pursing an aggressive enforcement campaign against leading companies in the crypto sector. Most recently, Gensler appears to be getting fed up with answering questions about crypto, commenting that he's bombarded with an "outsized ratio" of questions about crypto compared to traditional finance. Perhaps he needs help from Elizabeth Warren to answer those questions? Since it wouldn't be the first time she butts in into his matters.

Gary Gensler is an American economist, former investment banker, and government official who has served as the Chair of the SEC since 2021. The SEC was created "to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation" so as to build public trust in the market.

Early Life

Gary Gensler was born on October 18, 1957, in Baltimore, Maryland. He grew up in a Jewish family and was raised in the suburb of Pikesville. Gensler's father was a cigarette and pinball machine salesman. He has two siblings, and his family valued education, encouraging his intellectual pursuits from an early age.

Gensler is married to Francesca Daniel, and they have three children together. Gensler also enjoys playing squash and reading about history and economics.

Before becoming the SEC Chair, Gensler had a diverse career in finance, government, and academia. He received an undergraduate degree in economics in 1978 and an MBA in 1979, both from the Wharton School at the University of Pennsylvania. His professional journey began the same year at the esteemed Goldman Sachs as an investment banker before he made his leave in 1997 and joined the U.s. Treasury Department. Gensler later joined the Commodity Futures Trading Commission (CFTF) Chair in 2009, and then moving on to Academia in 2014 until 2021. He taught at the University of Maryland's Robert H. Smith School of business and was a senior fellow at the Brookings Institution.

MIT Gensler

With an abundant career-history on his back, he managed to prove himself and demonstrate a commitment to public service, regulatory expertise and knowledge to serve as the SEC Chair. Despite of what you might have heard or seen of Gensler in headlines recently, Gensler was actually once well-respected and liked by many.

In January 2020, an hour lecture titled "Introduction for 15.S12 Blockchain and Money, Fall 2018", was posted up on YouTube. The lecture was presented by Gensler that was held at MIT, and the video has since gotten over 6 million views. The introduction to blockchain lecture was well-received by many, and Gensler was also highly praised for his great knowledge on the subject.

From Enthusiast to Enforcer

So what happened? How did Gensler go from a vocal advocate for crypto and blockchain to one of the most prominent skeptics of the crypto industry, frequently sounding the alarm about its risks and regulatory shortcomings? His transformation from crypto cheerleader to critic has left many in the industry scratching their heads and now, many even came up with conspiracies on his sudden drift.

Gary Gensler was once a big fan of Ripple's XRP. In 2018, he even praised XRP for facilitating seamless cross-border payments. He discussed the potential of blockchain technology to revolutionize international money transfers and believed that stablecoins, pegged to traditional currencies or innovative digital assets like XRP, could be the solution for effortless global money transfers.

Now, Gensler's current tenure as SEC chief looks pretty different from his past support for XRP. This shift is interesting, especially considering the ongoing legal disputes between the SEC and various crypto companies, underestimating the challenges of navigating the intersection of innovation and regulation.

Gensler stated most crypto tokens are unregistered securities that are being sold illegally and blasting the industry as "rife with fraud, scams, bankruptcies and money laundering". His firm opposition has been so unwavering that it has led many in the industry to hope for a change in leadership after the November elections.

Gensler also started using a "poker chip" analogy to describe crypto tokens, implying that they are essentially securities, similar to chips used in casinos, and therefore subject to SEC regulation.

"The $125 billion of stablecoins we have right now are like poker chips at a casino, I do think that if this continues to grow – and it's grown about tenfold in the last year – it can present those systemic wide risks."

After the dramatic collapse of Sam Bankman-Fried and FTX, Genser faced criticism from lawmakers for not acting sooner, leading to Gensler adopting an even tougher stance on the industry today. In a letter to the SEC, US representative Ritchie Torres labeled Gensler as "singularly responsible" for the FTX catastrophe.

As 2023 progresses, Gensler has taken an increasingly firm stance against the industry, legal acations not only against FTX but also against major players like Binance and Ripple.

"The platforms often are co-mingling and trading against you and have market-makers that are on the other side of your trades. We don't allow that in the rest of our securities markets. The securities laws are there to protect you, and this is a field rife with fraud, rife with hucksters. There are good-faith actors as well, but there are far too many that aren't."

Ethereum in the Crosshairs

In a move that has sent shockwaves through the crypto community, Gensler has set his sights on Ethereum, the world's second-largest cryptocurrency. This investigation into Ethereum's operations and potential securities violations has sparked an uproar and fears of another regulatory crackdown, leading investors and enthusiasts alike wondering what's next for the beloved blockchain.

Gensler believes Ethereum may be operating outside the bounds of securities laws. These implications are far-reaching, with some experts warning of a potential "crypto winter" if the SEC were to take enforcement action against Ethereum.

But what exactly is the SEC investigating? Sources close to the matter suggest that the agency is looking into whether Ethereum's token, Ether (ETH), constitutes a security under federal law. If deemed a security, Ethereum would be subject to the same strict regulations as traditional stocks and bonds, a move that could fundamentally alter the cryptocurrency landscape.

Interestingly enough, Gensler commented back in 2018 during his lecture at MIT, that Ethereum was indeed not considered a security.

Ally to Ripple's Adversary

Just a year ago, Gensler was praising Ripple's innovative approach to cross-border payments and its potential to revolutionize the financial industry. He even went so far as to say that Ripple was "not a security" and that the SEC had no intention of taking action against it. But all of that changed in December 2020, when the SEC filed a lawsuit against Ripple, alleging that its token, XRP, was indeed a security and that the company had violated securities laws by selling it without proper registration.

Insiders claim that Gensler had come under pressure from powerful forces within the financial establishment, who saw Ripple as a threat to their dominance. Others speculate that Gensler was seeking to make an example of Ripple to demonstrate the SEC's toughness on cryptocurrency regulation.

Whatever the reason, the consequences have been severe. Ripple's XRP token has lost nearly 50% of its value since the lawsuit was filed, and the company's reputation has been severely damaged.

Following the chaos, Ripple CEO, Brad Garlinghouse, entered Fireside Chat and characterised Gensler as an "unethical human being" and labelling the regulatory agency's actions as fundamentally flawed. Garlinghouse also defended the token's status and extended his support to Ethereum.

Gensler Blinks on Bitcoin ETF, But Crypto Winter Lingers

On January 10 2024, the Commission has officially approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares. Notably, Gensler is very cautious to call them ETPs, and not ETFs.

Despite the approval, Gensler remains hostile to the cryptocurrency in general.

Gensler confronted the challenging question of justifying the SEC's sudden U-turn on bitcoin ETFs, attributing the shift to evolving circumstances, stating simply: 'Circumstances have changed'.

The decision reversal came as a result of a significant court defeat in August 2023, when the U.S. Court of Appeals for the D.C. Circuit ruled against the commission for inadequately justifying its rejection of Grayscale's proposed bitcoin ETF. This legal setback forced Gensler's hand, but he remains resolute in his stance on other fronts. Furthermore, he declared to the public that they should not get their hopes up, as he will not commit to Ethereum ETFs, and that Bitcoin approval was simply the 'most sustainable thing to do' after losing in court.

Gensler continues to clash with the crypto community in ongoing legal battles, largely centered on his assertion that most cryptocurrencies qualify as securities and therefore fall under the SEC's regulatory umbrella.

The vote was split at 2:2, with Gary Gensler casting the deciding vote in favor of approving spot bitcoin ETFs. Before the vote took place or was even casted, SEC's official X account was "compromised" and falsely reported approvals, posting an unauthorized tweet stating that SEC has granted approval for Bitcoin ETFs for listing.

Bitcoin's price briefly shot up more than 2% higher after the unauthorized post went out, before falling back down after Gensler stated that there was unauthorized access and activity on the account, and that the SEC would work with law enforcement to investigate the matter.

Gensler's Gambit: A Dangerous Game of Cat and Mouse in the Crypto World

Is Gensler a champion of investor protection or a master manipulator? From his mysterious ties to traditional finance to his sudden crusade against cryptocurrencies, he has left people conflicted on his real agenda that people can't help but come up with conspiracy theories against him.

Anti-Crypto Agenda

There are thousands of posts on the popular forum platform, Reddit, discussing the possible theories on why Gensler has flipped the switch on cryptocurrency. He was once a blockchain enthusiast, presenting lectures in MIT that has been well-received by many. However, his stance changed right after he became SEC Chair.

Personal Vendetta Towards Binance

Before Gary Gensler became SEC Chair, he had his eyes on another position that differed tremendously from his current role. Gensler offered his services as an advisor to Binance in 2019, according to Binance's lawyers.

In June 2023, SEC sued Binance and its founder Changpeng Zhao (CZ), over their "blatant disregard of the federal securities laws."

According to Binance's lawyers, Gensler engaged in multiple discussions with CZ and other Binance staff, addressing the regulatory uncertainty around crypto while offering to act as an advisor to Binance.

Right after word gets out, people began to suspect Gensler for possibly holding a grudge against Binance for not giving him the advisory position. Leaving Gensler probably feeling spurned and humiliated, could he be leveraging his regulatory prowess years later? The SEC's aggressive pursuit of Binance has the crypto community wonder if Gensler's crusade is driven by a genuine desire to protect investoers or a personal vendetta against those who dared to defy him.

Elizabeth's Whisperer

This conspiracy theory carries most wind and is most believable amongst others. This is a tantalizing tale of intrigue and control, and is gaining traction, suggesting Gensler is actually not the mastermind of his questionable decisions and acts on the crypto sector so far.

Instead, he is allegedly being manipulated by a "bigger fish" - a higher authority pulling the strings, dictating his every move in the crypto arena.

Like a puppet on a string, Gensler's actions are being orchestrated by an unseen force, driving the SEC's crusade against cryptocurrency. The question on everyone's mind: who is the puppeteer?

Rumors abound, pointing to a mysterious figure or organization wielding significant power and influence. Some speculate it might be a government agency, a financial institution, or even a clandestine group with a vested interest in shaping the crypto narrative.

Many people are intrigued, especially those on the Internet. Suggestive names started popping up all across online platforms, trying to figure out who might be the mysterious yet devilous puppeteer. One familiar name that kept showing up was Elizabeth Warren, a senior US senator of Massachusetts.

Apparently, these two are "close friends" and they go way back. However, only in 2023, the two biggest names in the industry made it to headlines and were being sued. The two were conspiring with one another to crack down on crypto and their secretive exchange came to light when emails between the two were obtained by Warren's office by Heritage Foundation Oversight Project.

It revealed that her economic advisor sent Gensler a list of questions the senator planned to ask the SEC Chair, along with suggested answers for him.

“Let me know if you're okay with the questions as currently written,” the advisor asked Gensler. In a follow-up letter, Warren’s advisor further asked: “Let me know if it's looking like the chair has any issues with the framing of the questions … definitely don’t want to put him in a tough spot.”

Expectedly, Warren asked almost word-for-word from the email during the hearing. It is worth noting that Warren is "the single biggest critic of Bitcoin and crypto in the US Congress", but her response to this exposé? She argues that the move would halt "money laundering, theft and fraud schemes, and even help fight climate change."

Gensler has consistently supported the Democratic candidates with donations for decades and supported Warren's presidential candidacy during the 2020 Democratic primary, contributing $2800 to the senator's campaign fund - the maximum an individual could send at that time.

Proving himself as a crucial keyplayer for Hillary Clinton's initial presidential bid in 2008, he later also served in her 2016 campaign, earning him the nickname the "Elizabeth Whisperer" while operating as a middleman between Clinton and Warren.

While opinions about Gary Gensler's tenure as SEC Chair are divided, some individuals appreciate his ethical stance and decision-making approach. As a knowledgeable expert on crypto and blockchain, Gensler may simply be fulfilling his duties in his new role. Although his current stance appears anti-crypto, we remain hopeful that his perspective will evolve, benefiting the crypto community entirely.