The Blockchain Association, a trade group representing the blockchain industry, has called on SEC Chair Gary Gensler to recuse himself from all enforcement decisions related to digital assets. The association argues that Gensler has “wrongly prejudged that all digital assets are securities” and that his overt bias and hostility towards the industry disqualify him from making impartial decisions.
The association’s concerns are based on Gensler’s previous statements and actions. In a 2019 speech, Gensler said that he believed that “many” cryptocurrencies were securities, and he has since taken a number of steps to regulate the industry. For example, the SEC has brought enforcement actions against several cryptocurrency companies, and it has proposed new rules that would require cryptocurrency exchanges to register with the agency.
The Blockchain Association argues that Gensler’s prejudgment of the digital asset industry creates a “conflict of interest” that prevents him from making impartial decisions. The association also argues that Gensler’s “overt bias and hostility” towards the industry have led him to “overreach” in his enforcement actions.
The association is not the first to call on Gensler to recuse himself from digital asset enforcement decisions. In 2022, a group of law professors filed a petition with the SEC asking the agency to require Gensler to recuse himself. The professors argued that Gensler’s “prejudgment” of the digital asset industry made it impossible for him to “act impartially” in enforcement matters.
It remains to be seen whether Gensler will recuse himself from digital asset enforcement decisions. However, the Blockchain Association’s call for recusal is a sign of the growing tension between the SEC and the cryptocurrency industry.
Disclaimer: This article is for general information purposes only. It does not constitute legal advice and should not be relied upon in making legal decisions.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.