What's up with that Mr Gensler? 🤨

6 mar 2023

In our society, responsibility is a fundamental concept that helps to ensure accountability and fairness. In many situations, responsibility for negative outcomes can be traced back to the person or organization that was responsible for creating or managing the situation in question. For example, if a building collapses, the builder may be held responsible for failing to construct it properly. If food is found to be poisonous, the cook or food manufacturer may be held responsible for failing to ensure its safety.

Similarly, when it comes to the regulation of securities markets, the SEC is ultimately responsible for ensuring that investors are protected and that markets operate fairly and efficiently.

Isn't that right Mr Gensler?


Overview:

The SEC, or the U.S. Securities and Exchange Commission, is a regulatory agency tasked with protecting investors and ensuring that securities markets operate fairly and efficiently. Its mission is to promote capital formation, maintain fair, orderly, and efficient markets, and protect investors.

The SEC is responsible for enforcing federal securities laws and regulating the securities industry, including the stock and options exchanges, broker-dealers, investment advisors, and mutual funds. It also oversees public companies and their disclosures, and has the power to bring civil enforcement actions against individuals or companies that violate securities laws.

However, despite its best efforts, there have been instances in which the SEC's supervision has failed, leading to negative outcomes for investors or the broader market. For example, the SEC has been criticized for its handling of the Madoff scandal, in which Bernard Madoff was able to perpetrate a massive Ponzi scheme for many years despite numerous red flags.

When the SEC's supervision fails, it can have serious consequences for investors and the broader market. Investors may lose money as a result of fraudulent or manipulative activities, and the integrity of the markets may be undermined. In such cases, the SEC may be held responsible for failing to detect or prevent these activities.

The SEC takes its responsibilities very seriously, and has implemented a number of reforms and initiatives over the years to improve its ability to detect and prevent securities fraud. However, the SEC is not immune to human error or regulatory challenges, and must constantly adapt and evolve to keep pace with changing market conditions and new forms of securities fraud.


1. FTX, Made (and supervised) in the USA:
The SEC's supervision of cryptocurrency exchanges like FTX would primarily be focused on ensuring that the exchange complies with relevant securities laws and regulations. As a cryptocurrency exchange, FTX may offer trading in digital assets that are considered securities under U.S. securities laws, such as tokens that are deemed to be investment contracts or securities.

Here are some ways that the SEC might had supervised an exchange like FTX:

Registration: Cryptocurrency exchanges that are involved in trading securities are generally required to register with the SEC as a national securities exchange or an alternative trading system (ATS). This would involve meeting certain regulatory requirements and complying with ongoing reporting obligations.

Compliance: Once registered, the exchange would need to comply with various regulatory requirements, such as maintaining fair and orderly markets, preventing market manipulation, and ensuring customer protection. The SEC would monitor the exchange's activities to ensure that it is complying with these requirements.

Enforcement: The SEC has the authority to investigate and take enforcement action against exchanges that violate securities laws or engage in fraudulent activities. This could involve imposing fines, requiring the exchange to cease certain activities, or pursuing legal action against individuals or entities involved in the exchange's operations.

Policy development: The SEC is also responsible for developing and implementing policies related to securities markets and trading activities. The agency may engage in rulemaking or issue guidance to clarify how securities laws apply to cryptocurrency exchanges and other digital asset trading platforms.

Overall, the SEC's supervision of cryptocurrency exchanges like FTX would be focused on ensuring that these exchanges are complying with relevant securities laws and regulations, and that investors are protected from fraudulent or manipulative activities.

RESULT: FIASCO!!! FTX collapsed, isn't SEC to blame?🤨

2. Silvergate, Made (and supervised) in the USA:

SEC does have some oversight over banks like Silvergate Bank. While the primary regulator for banks in the United States is the Federal Reserve, the SEC also has a role in regulating certain aspects of banks' activities, particularly in relation to securities.

For example, Silvergate Bank provides services to cryptocurrency exchanges, which may involve the trading of digital assets that are considered securities under U.S. securities laws. In such cases, the SEC would have a role in regulating these activities and ensuring that they comply with relevant securities laws.

In addition, the SEC has the authority to investigate and take enforcement action against banks and other financial institutions that violate securities laws or engage in fraudulent activities. Therefore, while the SEC's role in regulating banks is generally more limited than other financial regulators, it does have some jurisdiction over certain aspects of banks' operations, particularly where they intersect with securities markets.

RESULT: FIASCO!!! FTX collapsed, isn't SEC to blame? 🤨

Mr Gensler and Mr Burns :

Apart from the meme that has the two (Mr Burns from the Simpsons and Mr ary from SEC) appearing to be one:

☞Mr Gensler loves his Bitcoin (check his MIT free course on youtube)

☞ Binance tried to hire Gary Gensler in 2018 for closer ties with U.S. regulators: Report

☞ SEC chair Gensler confirms “everything other than Bitcoin” is a security: Implications and analysis

☞ Latest from Mr Gensler on Bloomberg Technology (he is a happy guy lately)


CONCLUSION 1:
Mr Gensler and the SEC have been failing badly... 2 major collapses on YOUR watch, our dear SEC

CONCLUSION 2:
Mr Burns from the Simpsons won't let the price go over 25k. Seriously

CONCLUSION 3:
Just another delay for BTC which will eventually go where it belongs. And that (according to me and my humble opinion) is to new All Time Highs.


One Love,

The FXPROFESSOR

ps. March Madness postponed but watch out, March has been a month with downs...and ups! I'm Long anyways

8 cze 2023

Uwaga

old post from March.. yet it feels like it's been repeated today... Mr Gensler, we buy your dip with pleasure! It has worked before and it will work again (cause you, Mr Gensler are also buying the dip!!)

new 'Gensler resistance' chart: