Regulation
Crypto Community Mobilizes as Messari Declares Independence from SEC
Ryan Selkis, CEO of Messari, said that his company will cease all contact with the U.S. Securities and Exchange Commission (SEC).
The bold move comes as Selkis accuses the SEC of failing to uphold its regulatory duties and plans to challenge its authority. In a draft letter shared on July 7, Ryan Selkis, CEO of blockchain analytics firm Messari, said the firm will no longer work with the SEC in any capacity.
Selkis criticized the leadership of SEC Chairman Gary Gensler, calling it corrupt and harmful, and said the SEC’s actions have not helped citizens.
General manager.
I have declared my independence from the SEC and its corrupt chairman Gary Gensler.
In the coming months, Messari will operationalize a war against this illegitimate and corrupt agency.
The draft below will be refined, improved, and then submitted to the SEC and Congress.
🇺🇸🇺🇸🇺🇸 photo.twitter.com/okVWKMhDSz
— Ryan Selkis (d/acc) 🇺🇸 (@twobitidiot) July 7, 2024
Accusations of incompetence
The letter outlines several instances demonstrating the SEC’s incompetence, including its failure to detect and prevent fraud involving collapsed crypto entities such as FTX and GenesisSelkis argued that private actors, such as public blockchains and privately funded investigative journalism, could provide greater transparency to users and identify fraudulent activity.
Messari’s letter announced a multifaceted strategy to challenge the SEC on multiple fronts. This approach includes court battles, media campaigns, and appeals to Congress.
The letter has caught the attention of the crypto community, with many praising its intentions. Some are calling for more cryptocurrency companies to sign the letter, forming a group of organizations against the SEC.
The SEC has been regulating the emerging digital asset space over the past year with tough measures under Gensler. The organization has sued several popular cryptocurrency companies, including Coinbase, Bittrex, and Binance. Just as importantly, it has classified other crypto assets as securities, including Polygon and Solana.
This regulatory approach has shocked many in the industry. Co-founder of Ethereum Vitalik Buterin recently criticized the current rulesclaiming that they harm the cryptocurrency industry by making it difficult for well-meaning developers to do their jobs. Despite this criticism, Gensler insists that most digital assets are securities and that the industry must follow local laws.
Messari’s decision to leave the commission and flatly refuse to submit to the SEC’s authority clearly defines the position of crypto organizations in the current standoff with regulators. The company is currently preparing for the trial, which could affect the future of crypto regulation in the United States.