Crypto Vs SEC: Is Wall Street's Crypto Invasion Being Secretly Aided by Gensler? – Coinpedia Fintech News

Tony Edward, the founder, and host of the Thinking Crypto Podcast, has sparked a contentious debate on social media, accusing SEC Chair Gary Gensler of favoring traditional finance giants in their strategic foray into the cryptocurrency sector. Edward’s scathing Twitter thread alleges a deliberate blind eye from Gensler toward the collapse of several major crypto firms, including FTX, Celsius, Terra Luna, Voyager, and 3AC in 2022.

The Collapse of Crypto Pioneers

According to Edward, Gensler’s inaction, despite multiple meetings with FTX officials and its CEO Sam Bankman-Fried (SBF), was a calculated move to “cleanse the industry” for Wall Street firms. Adding fuel to the fire, Gensler also rejected Grayscale’s application for a BTC spot ETF.

As these crypto firms crumbled, Edward points out that BlackRock launched a BTC private trust, partnered with Coinbase, and began custody of USDC reserves. Similarly, BNY Mellon launched a crypto custody service, and Visa and Mastercard increased their crypto integrations and developments.

Regulatory Actions and Wall Street’s Counter Moves

Moving into 2023, Edward notes that Gensler shifted his focus towards tier 1 regulated companies that survived the bear market. High-profile firms like Coinbase, Kraken, Paxos, and Binance found themselves on the receiving end of Wells Notices and lawsuits from the SEC. Edward alleges that Gensler even propagated false narratives attributing the banking collapses to the crypto industry.

Meanwhile, the traditional finance behemoths continued their crypto expansion. Fidelity launched its crypto trading service, BlackRock filed for a BTC spot ETF, and Fidelity, Charles Schwab, and Citadel collectively launched a crypto exchange. Deutsche Bank filed for a crypto custody license, WisdomTree and Invesco filed for BTC spot ETFs, and rumors circulated about Fidelity’s plans to file for a BTC ETF and acquire Grayscale.

Edward’s allegations paint a picture of a crypto landscape manipulated by Wall Street giants in collusion with the SEC. While these claims are yet to be substantiated, they have ignited a discussion on the role of regulators and the influence of traditional finance in shaping the future of cryptocurrencies. The unfolding drama holds implications for the crypto industry’s evolution and the broader balance of power within the global financial ecosystem.

Also Read – Breaking: WisdomTree Files for Bitcoin ETF, Following Blackrock’s Lead

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