Gary Gensler, the head of the Securities and Exchange Commission, is under fire for promoting the cryptocurrency Algorand (ALGO). As the regulatory crackdown on Bitcoin and other cryptocurrencies continues, Gensler’s promotion of Algorand has led to accusations of hypocrisy.
Footage has emerged of Gensler speaking highly of Algorand at multiple public events since at least 2019. In the video clip, Gensler praises Silvio Micali, the founder of Algorand and a Turing Award winner at MIT. Gensler claims that Micali’s technology has great performance and that you could create Uber on top of it.
Despite Gensler’s anti-crypto stance at the SEC, he is listed as an instructor on a MIT Open Learning course called “Blockchain and Money.” Gensler’s colleague at the SEC, Commissioner Hester Peirce, has criticized his opposition to blockchain technology, stating that it embraces stagnation and force centralization.
However, the promotion of a security falls under the Securities Act of 1933 and the Securities Exchange Act of 1934 in the United States. These laws regulate the offer and sale of securities, require registration or an exemption, and prohibit misrepresentation or omission of material facts. Those who violate these laws can face civil and criminal penalties, including fines and imprisonment.
Last year, the SEC took legal action against reality star Kim Kardashian for touting a crypto security. And just recently, the SEC named six crypto tokens listed on Bittrex as securities, including Algorand. According to the SEC, investors expected to make a profit from these tokens, making them subject to US law.
The appointment of Inspector General Deborah J. Jeffrey by the SEC on Monday raises questions about whether Gensler will face an investigation for potentially promoting Algorand as a security.
Conclusion
Gary Gensler, the SEC Chairman, is facing criticism for promoting the cryptocurrency Algorand despite his anti-crypto stance. Gensler’s praise for Algorand’s founder, Silvio Micali, and the technology’s performance has led to accusations of hypocrisy. With the SEC cracking down on crypto securities and the appointment of a new Inspector General, it remains to be seen whether Gensler will face any repercussions for his actions.
