CEO Messari Accuses SEC of Corruption, Prepares for ‘War’

Messari chief ready to accuse SEC of corruption and ineffective regulation of crypto industry.

Ryan Selkis, CEO and co-founder of Messari, said he will no longer cooperate with the U.S. Securities and Exchange Commission (SECOND) in an official capacity or not. He believes that the regulator is undergoing reform and changing its direction.

Selkis said that by pursuing cryptocurrency companies, the SEC is abandoning its responsibilities to protect citizens and ensure market stability. Instead of developing clear rules to regulate cryptocurrencies, the SEC is pursuing its own interests and those of federal employees rather than those of digital assets. Additionally, he called the SEC chairman Gary Gensler incompetent and corrupt.

“And worse, it appears to exist solely for its own benefit and that of its federal employees, rather than to protect citizens from fraud and abuse, monitor and improve the health of markets, and promote organizations that raise capital.”

Ryan Selkis, CEO and Co-Founder of Messari

Selkis said the analytics platform is ready to compete with the SEC by using modern technology to provide high-quality market information.

Messari Data Registry

In 2018, Messari already launched a registry of data on crypto projects, similar to the SEC EDGAR database. Selkis believes that open blockchains can revolutionize the issuance and settlement of financial assets. Private companies using new technologies are better able to meet public needs, and traditional government regulators become obsolete.

The Messari founder added that investigative journalism is more effective than the SEC’s approach of crushing crypto companies when they uncover fraud. Selkis noted that Messari has also helped identify many inconsistencies within large crypto companies.

SEC Fraud

This is not the first time that Selkis criticized The Commission said in August 2022 that users lost $1 billion in funds in 2021 due to cryptocurrency-related fraud. However, this figure is lower than the number of investors losing out due to the SEC’s hostile approach to cryptocurrencies.

Selkis admitted that because of the SEC’s bias toward cryptocurrencies AND F, Shades of grey Investors suffered losses of $7 billion. The Messari founder believed that Gensler was prioritizing expanding his power over the cryptocurrency industry instead of truly focusing on protecting investors.

Cryptocurrency Industry Continues to Criticize SEC

Because of its policies, the Commission periodically faces a wave of criticism from cryptocurrency industry players and U.S. lawmakers. For example, in late June, Brad Garlinghouse, CEO of Ripplesharply criticized the SEC and Gensler.

Garlinghouse pointed out that the SEC’s current policies regarding the cryptocurrency sector could be a critical factor leading to Joe Biden’s defeat in the upcoming November presidential election. The Ripple boss claims that Gensler’s actions have slowed the development of the blockchain industry in the United States and undermined public trust in government institutions.

Garlinghouse particularly highlighted the SEC’s failure to prevent the collapse of the FTX According to him, this inconsistency in the regulator’s actions could have serious political consequences.

The Coinbase platform also sued the SEC and the Federal Deposit Insurance Corporation (FDIC) in the United States District Court for the District of Columbia.

The cryptocurrency exchange platform believes that US regulators want to disrupt the sector. Representatives of the platform noted that for nearly two years, a wide range of federal financial regulators, including the SEC, FDIC and the Fed, have used all regulatory tools to achieve this.

US politicians are unhappy with Gensler

Last year in the U.S. House of Representatives, the SEC chief faced some of the most significant criticism over the agency’s stance on cryptocurrencies, particularly regarding the recognition Ethereum as security, stablecoin regulation and the situation around FTX.

House Majority Leader Tom Emmer took the liberty of yelling at the head of the committee, accusing him of deliberately pushing the crypto industry out of the United States and into the “claws of the Chinese Communist Party.”

Gensler has also been criticized by Democrats, who have expressed dissatisfaction with the lack of priority in enforcement actions against offshore companies such as Binance And Attachedthat serve residents of the United States.

Following the meeting, Ohio House Representative Warren Davidson, a Republican, decided to introduce a bill that would require Gensler to resign as SEC director.

The initiative was launched because Gensler intended to reconsider the definition of exchange, which sparked a wave of criticism from crypto industry representatives.

What impact will Messari’s statements have on the SEC?

The Commission has long been accustomed to numerous criticisms from politicians and representatives of the cryptocurrency industry. However, the regulator continues to file complaints against cryptocurrency companies. Therefore, the SEC can continue its policy as before, despite Selkis’ statements.

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