Paul Graham Says Gensler's Approach to Crypto Was 'Really Stupid'
Analysis
Price Impact
HighThe shift in regulatory approach, moving away from 'strategic ambiguity' and gensler's aggressive stance to one that considers 'most crypto tokens are not securities' and settling major enforcement actions (like with ripple, coinbase, and kraken), significantly reduces legal uncertainty and regulatory risk for the crypto market.
Trustworthiness
MedThe news quotes a highly respected tech figure (paul graham) and references real-world regulatory actions (sec settlements/dismissals). however, the article incorrectly identifies paul atkins as 'the new sec head' (gary gensler remains the chair), which slightly detracts from the precise factual accuracy regarding leadership, though the sentiment of a regulatory shift is valid.
Price Direction
BullishReduced regulatory pressure and the potential for a clearer legal framework create a more favorable environment for crypto assets. this significantly de-risks investments and encourages institutional participation, especially for altcoins previously targeted by the sec, such as xrp.
Time Effect
LongRegulatory clarity and a more constructive approach from authorities provide a stable foundation for sustained growth, innovation, and broader adoption within the crypto industry, rather than just a short-term pump.
Original Article:
Article Content:
Cover image via upload.wikimedia.org Read U.TODAY on Google News According to Y Combinator co-founder Paul Graham, the crypto industry begged for regulation, but was deliberately left dealing with strategic ambiguity by the previous SEC administration. Advertisement "I disagree with these people, but I have to point out that they wanted crypto regulated, not deregulated," Graham said. Graham has described the approach of former SEC Chair Gary Gensler as "stupid," noting that the agency had deliberately refused to clarify the legal status of cryptocurrencies. HOT Stories Paul Graham Says Gensler's Approach to Crypto Was 'Really Stupid' 'Greatest Risk' to Bitcoin Identified by Strategy's Saylor XRP Hits Insane 8,700% Liquidation Imbalance, Ripple Snatches Major Banking Partnership, Saylor's Strategy Buying BTC Again, SHIB Volume Collapses — Top Weekly Crypto News Crypto Market Review: Shiba Inu's (SHIB) Back in Business, Ethereum (ETH) Must Decide, XRP Locked in on $2 Legitimate companies that wanted to follow the rules (like Coinbase) were stonewalled or sued. This forced some of them to move offshore or stifle features. Advertisement You Might Also Like Fri, 12/11/2020 - 16:06 Crypto Could Kill Credit Cards: Y Combinator Cofounder Paul Graham By Alex Dovbnya The SEC was suing legitimate exchanges, but actual frauds (like FTX in the past, or the current AI scammers) thrived because they never cared about compliance in the first place. Graham previously insisted that the industry’s anger was rational. Advertisement In his earlier social media posts, described the administration’s handling of crypto as "appallingly irresponsible" and an "attack." Atkins's U-turn In the meantime, Paul Atkins, the new SEC head, has launched "Project Crypto," which is meant to normalize digital assets. His approach is based on the idea that "most crypto tokens are not securities," which is a direct reversal of the Gensler doctrine. The Atkins-led SEC voluntarily dismissed or settled major enforcement actions against Coinbase, Kraken, and Ripple. Atkins argued that litigation was an inefficient way to create law However, this regulatory U-turn has attracted some pushback from the Democrats. #Gary Gensler #Ripple News