Gary Gensler’s Secret Plan to Destroy the Cryptocurrency Market May Have Been Exposed – FTX Founder SBF Also Involved

A new claim that will create controversy in the cryptocurrency market came from UniSwap (UNI) founder Hayden Adams.

Gensler Even Wanted to Designate Bitcoin as a Security

In a conversation with Sam Bankman-Fried (SBF) about two weeks before the FTX crash, Adams suggested that then-SEC Chairman Gary Gensler was preparing to classify all major cryptocurrencies, including Bitcoin and Ethereum, as “securities.”

Adams stated on social media that the SBF had asked him to support a bill that would “destroy” the crypto industry, but he had refused. Sharing details of the meeting, Adams said the SBF is in close contact with the SEC and that the institution wants to establish full authority over the crypto market.

According to Adams' statement, the SEC was considering designating not only Ethereum but even Bitcoin as a security. He also stated that the plan was for FTX to obtain a sole brokerage license in exchange for the regulations, while an institution FTX partners with would have a sole exchange license. In such a scenario, crypto trading in the US would only be legally conducted through FTX.

“The SBF didn't put it that way, but they did say they were in very deep discussions with the SEC, and that the agency wanted jurisdiction over ETH and BTC,” Adams said. He also added that the SBF was quite tense during the meeting.

Adams stated that the plan in question completely fell apart with the collapse of FTX, and commented, “Ironically, the collapse of FTX may have saved the industry.”

*This is not investment advice.