The recent crackdown on crypto companies raises eyebrows as SEC Chair Gary Gensler’s past relationship with Binance comes to light. Allegations suggest that Gensler offered advisory services to Binance’s parent company in 2019, leading to questions about his current aggressive stance towards the crypto industry.
During that time, Gensler was a professor at the prestigious Massachusetts Institute of Technology’s Sloan School of Management. However, his appointment as SEC Chairman in 2021 marked a significant shift in his approach, as he pursued crypto companies relentlessly, accusing them of selling unregistered securities.
The crypto community worldwide stands against the SEC crackdown, rallying under the “Stand With Crypto” campaign to advocate for a decentralized financial system.
Interestingly, before the crackdown on Binance, Gensler attempted to establish a closer relationship with the company. Insider information suggests that it was Binance who initially approached him, adding irony to the current situation.
According to recent filings, Binance’s legal team claims that Gensler and Binance’s CEO Changpeng Zhao maintained contact even after their initial meeting. Zhao even participated in an interview with Gensler for a cryptocurrency course at MIT, further blurring the lines of their relationship.
In 2019, Gensler sent Zhao a copy of his intended testimony, explicitly stating that he did not advise any financial or technology companies and did not own any cryptocurrencies. This statement raises concerns considering his alleged involvement with Binance at the time.
Binance’s legal team argues for Gensler’s disqualification from their case due to his previous relationship with Zhao. They believe Gensler could provide crucial information about the company and request confirmation from the SEC staff regarding Gensler’s recusal.
Transparency and proper handling of potential conflicts of interest in regulatory proceedings are crucial, emphasizing the need for a fair and unbiased evaluation of Binance’s situation.
The SEC maintains that Gensler has met his ethical obligations and any recusal requirements. It is important to note that the SEC’s investigations into Binance.US and Binance began after Gensler’s alleged interactions with Zhao.
As the crypto industry faces regulatory scrutiny, Gensler’s past connection to Binance serves as a reminder of the complex web of relationships and interests behind the scenes. The impact of this revelation on ongoing legal proceedings and the broader crypto landscape remains uncertain.