Crypto investors were dismayed by the SEC’s perceived lack of effort in protecting them. SEC Chairman Gary Gensler’s frequent assertions of investor protection seemed to contradict his focus on suing crypto companies, while belatedly pursuing entities like FTX only after massive frauds, and relentlessly targeting Ripple for years.
Following a fake endorsement and Bitcoin price volatility, an internal investigation into the SEC is anticipated by Fox Business. This incident led to significant liquidations and financial losses for U.S. investors, raising questions about the SEC’s role in compromising account security.
Senator Bill Hagerty made a critical statement, asserting that Congress will hold the SEC accountable for the unacceptable events, highlighting the need for answers to the recent turmoil.
The crypto market has been rife with speculation over the past few years, with dreams of using Litecoin at Walmart or following BlackRock’s spot XRP ETF application, only to be misled by false information about a Bitcoin ETF approval from the SEC’s Twitter account, complete with a smiley emoji.
These speculative scenarios remind us of the extent to which speculation has infiltrated crypto, with the SEC itself becoming a source of speculation. Whether the SEC will accept responsibility or continue to issue ETF rejections without accountability remains to be seen.