• Dogecoin co-founder Billy Markus has called out the SEC Chair for providing no crypto guidelines.
• The SEC has always maintained that current securities laws apply to crypto.

Dogecoin co-founder Billy Markus, who goes by the pseudonym “Shibetoshi Nakamoto,” recently slammed Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC) for what he perceives as a lack of clear and effective rules governing the crypto market.

Gensler’s Views on Crypto Regulations

Gensler recently shared his thoughts on the state of the crypto industry during an exclusive interview on CNBC’s Money Movers. He emphasized the prevalence of noncompliance within the crypto space, citing concerns about securities laws, anti-money laundering measures, and public protection. 

He described the crypto industry as the “Wild West,” highlighting issues of fraud, bad actors, and noncompliance with U.S. regulations meant to protect investors. Gensler’s statements, however, triggered a backlash from the crypto community, with many expressing frustration over the lack of specific guidelines.

Markus, in particular, took issue with Gensler’s approach, accusing him of merely “hand waving” without providing concrete rules for the crypto industry. The Dogecoin co-founder criticized Gensler, labeling him as “useless in every single way.” This frustration stems from the prolonged demand for clear regulatory frameworks specific to crypto, which the SEC has yet to deliver.

The Securities and Exchange Commission’s response to the industry’s demand for clear rules has been firm. Despite calls from various quarters, including San Francisco-based exchange Coinbase, the SEC has maintained that existing regulations are sufficient to govern the crypto space. Coinbase’s petition for new rules was denied, leading to the exchange filing a court petition to challenge the SEC’s decision.

Gensler, in response to Coinbase’s demands, emphasized that the SEC has already published rules covering areas such as custody of assets, exchanges, broker-dealers, advisors, and securities offerings. He openly placed the blame on players in the blockchain industry, alleging widespread noncompliance rather than a lack of regulatory guidance.

The SEC’s Legal Defeat

Under Gensler’s leadership, the SEC faced legal defeats in cases against Ripple and Grayscale Investments, as the former is accused of violating federal securities statutes. Despite these setbacks, Gensler continues to advocate for increased resources to address the challenges posed by the crypto market.

In an earlier budget request to the U.S. Senate Appropriations Committee, Gensler sought over $2.4 billion for the SEC’s 2024 fiscal year. He highlighted the need for additional funds, citing the agency’s responsibility to protect users from the volatility of the crypto industry.

It is important to mention that Gensler has stated publicly that only Bitcoin (BTC) is not a security and that all other cryptos are subject to investigation. He stated that if the general public invests money and expects to profit from the work of others, “in a common enterprise, that’s a security.” 

Overall, the clash between Markus and SEC Gensler highlights the ongoing struggle for regulatory clarity in the crypto space. As the industry continues to evolve, it remains to be seen whether the SEC will provide the much-needed rules to govern this growing sector or if the clashes between regulators and crypto advocates will persist.