Chair

Gary

<p>The post <a rel="nofollow" href="https://coinpedia.org/news/blockchain-association-questions-sec-chairs-authority-in-crypto-asset-decisions/">Blockchain Association Questions SEC Chair’s Authority in Crypto Asset Decisions</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Jake Chervinsky, a renowned lawyer and Chief Policy Officer at the Blockchain Association, has challenged the U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, on his stance regarding digital assets. Chervinsky’s strongly worded tweets have called into question Gensler’s impartiality and have demanded his recusal from all enforcement decisions related to digital assets.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">1/ SEC Chair Gary Gensler has wrongly prejudged that all digital assets are securities.<br><br>As a result, federal law requires that he recuse himself from all enforcement decisions related to digital assets.<a href="https://twitter.com/MTCoppel?ref_src=twsrc%5Etfw">@MTCoppel</a> and I wrote a paper explaining why <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://t.co/xgJ09o4SPS">https://t.co/xgJ09o4SPS</a></p>— Jake Chervinsky (@jchervinsky) <a href="https://twitter.com/jchervinsky/status/1674464911714398229?ref_src=twsrc%5Etfw">June 29, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-gensler-s-perspective-all-digital-assets-are-securities"><strong>Gensler’s Perspective: All Digital Assets are Securities</strong></h2> 
<p>The controversy revolves around Gensler’s belief that all digital assets, apart from Bitcoin, should be classified as securities. Since his appointment as the SEC Chair, Gensler has made no secret of his conviction, which Chervinsky claims amounts to prejudgment. By expressing his views so openly, Chervinsky suggests that Gensler has compromised his position as a neutral arbiter in the enforcement process known as the “Wells process.”</p> 
<p>The Wells process serves as a formal procedure for SEC enforcement actions. It is designed to allow the SEC Commissioners to act as impartial judges, reviewing evidence and arguments presented by both the SEC staff and the enforcement targets before making any enforcement decisions. However, Chervinsky argues that Gensler’s preconceived notions about digital assets undermine this crucial process.</p> 
<h2 class="wp-block-heading" id="strong-chervinsky-s-argument-a-need-for-fairness-and-impartiality-strong"><strong>Chervinsky’s Argument: A Need for Fairness and Impartiality</strong></h2> 
<p>By refusing to analyze the “facts and circumstances” surrounding each case, Gensler has, according to Chervinsky, invalidated the process, violating the law that demands recusal when an SEC Commissioner has preemptively adjudged a case.</p> 
<p>The issue of prejudgment goes beyond individual cases, Chervinsky argues. If Gensler continues to participate in enforcement decisions, his bias could taint the entire enforcement process. To avoid the potential repercussions, Chervinsky insists that Gensler should recuse himself from all future decisions involving digital assets. Furthermore, any previous enforcement actions in which Gensler was involved should now be invalidated.</p> 
<h2 class="wp-block-heading" id="strong-a-plea-for-legal-advice-strong"><strong>A Plea for Legal Advice</strong></h2> 
<p>Chervinsky’s argument has stirred up the digital asset industry, potentially providing a new line of defense for anyone dealing with an SEC investigation or enforcement action. He suggests that anyone in such a situation should consult with their legal counsel to discuss the possibility of raising the issue of Gensler’s recusal with the SEC or a federal court.</p> 
<p>The <a href="https://theblockchainassociation.org/chair-gensler-must-recuse-himself/">paper</a> that Chervinsky refers to, while not legal advice, provides further context for his argument. It underlines the importance of preserving the fairness and impartiality of the SEC’s enforcement function, a vital component of the agency’s mission.</p>

Blockchain Association Questions SEC Chair’s Authority in Crypto Asset Decisions

Table of Contents

CoinPedia News

Other articles published on Jun 30, 2023

Crypto Talks Won’t Reach 2024 Presidential Debate; CryptoLaw.US’ John Deaton

Stellar (XLM) Increased by 50% in 2 Weeks! June 30th XLM Analysis

Is Bitcoin Still The Digital Gold Of The 21st Century? Alex The Doge Continues To Show Its Strength

Binance Labs Announces Paris Event to Kick Off Incubation Program

Ripple’s Legal Battle with SEC Sets Precedent and Inspires the Crypto Industry

Ripple Will Win The Lawsuit Against SEC, Says Top Analyst

Join our free newsletter for daily crypto updates!