Back to the list

Expert Backlash: Pro-Lawyer Slams Gensler for Spreading False Information on Crypto

source-logo  coinpedia.org 01 June 2023 08:03, UTC

Well-known lawyer and cryptocurrency enthusiast, Bill Morgan, has taken to Twitter to vociferously express his disapproval of recent statements made by the head of the Securities and Exchange Commission (SEC), Gary Gensler. Morgan discredited Gensler’s contention that all cryptocurrencies, bar Bitcoin, are securities, a declaration he feels is baseless and ill-advised.

The social media saga started when Jesse Hynes, another prominent legal voice in the crypto sector, questioned the SEC’s opaque figures concerning digital asset securities. Referring to the SEC’s claim of identifying “at least nine” such assets, Hynes argued that, considering the SEC’s assertion of having clear rules, the lack of an exact count hints at ambiguity rather than precision.

An SEC Announcement Triggers Reactions

The Twitter conversation between Morgan and Hynes stems from the SEC’s recent disclosure that Ishan Wahi, a former product manager at Coinbase, and his brother, Nikhil Wahi, agreed to settle insider trading charges. The Wahi brothers allegedly profited by trading ahead of multiple announcements about the listing of certain crypto assets on Coinbase.

Court filings reveal that the SEC’s lawsuit, filed in July 2022, accused Ishan Wahi of sharing confidential information about the timing and content of upcoming Coinbase listings with Nikhil and his friend Sameer Ramani. These illicit tips led to the trio purchasing at least 25 crypto assets, and profiting by selling them post-announcement.

Morgan’s Rebuke

In response to this saga, Bill Morgan has slammed Gensler, arguing that Gensler’s blanket statement on cryptos, excluding Bitcoin, being securities is a distortion. He emphasized that the SEC couldn’t have investigated all 20,000 digital assets in existence, thus making Gensler’s statement a fabrication.

The backlash from Morgan underlines the ongoing tension and ambiguity in the relationship between the SEC and the world of cryptocurrencies. The debate surrounding the classification of various digital assets as securities or commodities remains a point of contention, highlighting the need for more precise and comprehensive regulatory standards in what is the largest crypto market in the world.

Crypto news