- Gary Gensler trolls crypto fans by teasing his resignation.
- Crypto fans gave a mixed response to the fakeout.
- The SEC has a prior history of social media mishaps.
When Gary Gensler was appointed the U.S. Securities and Exchange Commission (SEC) chair in 2021, the crypto community was cautiously optimistic. After all, Gensler had previously taught classes on blockchain and digital currency at MIT, leading many to assume he would bring a more sympathetic approach to the role. However, those hopes were cruelly dashed as Gensler oversaw a relentless campaign of enforcement actions.
Gensler’s critics argued that the SEC’s regulatory framework is unclear and that justified enforcement actions came too late to protect investors, such as in the case of Terraform Labs. This has made Gensler an increasingly unpopular figure among crypto fans, who have repeatedly called for his resignation or firing. Playing on these calls, the SEC chair has pulled off an epic troll that has left many feeling thoroughly duped.
Crypto Fans Short-Changed
In an epic troll of crypto fans, Gensler sparked a frenzy of excitement and anticipation on Wednesday by teasing that he was finally ready to hang up his regulatory hat and depart the agency.
Gensler took the opportunity to showboat over the SEC’s achievements under his leadership, boasting that the agency had filed over 2,000 enforcement actions and secured over $12 billion in civil penalties and disgorgement orders. Also waxing poetic about making the financial markets “more efficient, competitive, transparent, and resilient.”
Sponsored
However, when it seemed the crypto faithful were about to erupt in celebration, Gensler delivered the crushing blow, declaring “And we’re not done,” rather than confirming his departure.
Sponsored
The responses elicited the full spectrum of emotions from anger to matching Gensler’s energy with memes. Ripple CTO David Schwartz fell into the latter camp, sharing a GIF that perfectly encapsulated the community’s collective anguish over Gensler’s epic trolling escapade.
Likewise, X influencer Greg joined in the meme-ing to express his sheer disappointment with the way Gensler’s thread tweet turned out.
The crypto community’s meme-ing in response to Gensler’s trolling highlighted the outsized impact that social media can have on already volatile crypto markets.
SEC is No Stranger to Social Media Manipulation
The crypto market’s sensitivity to social media and rumor-fueled frenzy is next level. Just ask the investors who were whipsawed by the fake SEC Bitcoin ETF approval announcement that briefly sent the markets soaring. The announcement from the SEC’s X account on January 9 triggered an 8% surge in BTC as crypto fans celebrated the news.
However, the party was short-lived, as the agency quickly retracted the announcement, leaving everyone scratching their heads. The actual Bitcoin ETF approvals did eventually come the following day on January 10, but not without plenty of confusion and chaos in the interim. The SEC later claimed their X account had been hacked, sparking a law enforcement investigation.
It turned out that the whole episode was the result of a SIM swap attack that had given hackers access to the agency’s X account. Yet some had their doubts over the SEC’s explanation.
On the Flipside
- Using 2-factor authentication can protect against SIM swap attacks.
- Rumors of Gensler resigning have been floating around for many months.
Why This Matters
Gensler’s elaborate ruse has left crypto fans feeling duped and disheartened. The brief euphoria over his potential departure quickly gave way to frustration for some. However, for those who look to the bright side, it is reassuring to know the SEC Chair has a wry sense of humor.
Uniswap becomes the latest SEC target. Read more here:
Can Uniswap Follow Ripple’s Path to Navigate SEC Hurdles?
Pompliano calls on Bitcoin investors to zoom out during the sell-off.
“Bitcoin Crashing to $64,000 was a Dream” Pomp Re-Frames Crash
