Regulation
Crypto Community Rallies as Messari Declares Independence from SEC
Messari CEO Ryan Selkis said his company will cut all ties with the U.S. Securities and Exchange Commission (SEC).
The bold move comes as Selkis accuses the SEC of failing to meet its regulatory obligations and plans to challenge its authority. In a draft letter shared on July 7, Ryan Selkis, CEO of blockchain analytics firm Messari, said the company would no longer engage with the SEC in any way.
Selkis criticized SEC Chairman Gary Gensler’s leadership as corrupt and harmful, and said the SEC’s actions have failed to help citizens.
GM.
I declared my independence from the SEC and its corrupt chairman, Gary Gensler.
In the coming months, Messari will launch a war against this illegitimate and corrupt agency.
The draft below will be refined, improved, and then sent to the SEC and Congress.
🇫🇷🇺🇸🇺🇸 pic.twitter.com/okVWKMhDSz
— Ryan Selkis (d/acc) 🇺🇸 (@twobitidiot) July 7, 2024
Accusations of incompetence
The letter describes various examples illustrating the SEC’s incompetence, including its failure to detect and prevent fraud involving bankrupt crypto entities like FTX and Genesis. Selkis argued that private actors, such as public blockchains and privately funded investigative journalism, could better provide full disclosure to users and identify fraudulent activity.
Messari’s letter announced a multifaceted strategy to challenge the SEC on multiple fronts. That approach includes legal battles in court, 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.
Last year, the SEC regulated the emerging digital asset sector with stringent measures under Gensler’s leadership. The organization sued several popular companies that deal in cryptocurrencies, including Coinbase, Bittrex, and Binance. Just as importantly, it classified other crypto assets as securities, including Polygon and Solana.
This regulatory approach has upset many in the industry. Co-founder of Ethereum Vitalik Buterin recently criticized the current rulesclaiming they harm the crypto industry by making it difficult for well-meaning developers to work. Despite these criticisms, Gensler insists that most digital assets are securities and the industry must follow local laws.
Messari’s decision to leave the commission and flatly refuse to place itself under the SEC’s authority clearly defines the position of crypto organizations in the current impasse with regulators. At present, the company is preparing for the trial, which could affect the future of cryptocurrency regulation in the United States.