In an interesting turn of events, lawyers for the popular cryptocurrency exchange Binance have recently claimed that current SEC Chair Gary Gensler had offered his advisory services to the company back in 2019. As part of the allegations, it’s stated that Gensler had multiple conversations with Binance founder Changpeng Zhao as well as other executives prior to becoming the SEC Chair.
As cryptocurrency enthusiasts keep a close eye on the ongoing court battle between the SEC and Binance over alleged U.S. securities violations, these new details regarding Gensler and Zhao’s previous encounters have undoubtedly raised some eyebrows. The claims emerged after the SEC filed documents in which attorneys from Gibson Dunn and Latham & Watkins—two of Binance’s law firms—stated that Gensler offered to be an advisor for the crypto exchange.
Back in March 2019, when the alleged offer took place, Gensler was working as a professor of Practice of Global Economics and Management at Massachusetts Institute of Technology’s Sloan School of Management. After becoming SEC Chair in 2021, Gensler has overseen a significant crackdown on cryptocurrency exchanges, with the SEC pursuing cases against Coinbase, Bittrex, and Kraken.
Despite his alleged willingness to work with Binance in the past, Gensler has recently made statements expressing skepticism towards the cryptocurrency industry. He is quoted saying, “We don’t need more digital currency”, and referring to the crypto business model as “built on non-compliance”.
The filed documents reveal that Gensler and Zhao remained in contact after their March 2019 meeting, suggesting deeper ties between the two. Binance’s lawyers have now requested that Gensler recuse himself from matters concerning the company, due to these alleged connections. The SEC, on the other hand, maintains that Gensler is fully aware of and in compliance with his ethical obligations, including any recusal obligations.
In recent times, Gensler has testified before lawmakers on cryptocurrency matters, such as Facebook’s proposed Libra and Calibra wallet, urging for regulations that guard against illicit activities and protect individual privacy. With such a stance on crypto today, it’s interesting to witness these previously uncovered connections between Gensler and Binance coming to light.
As the debate unfolds surrounding Gensler’s true position on cryptocurrency, attention is drawn both to the necessity of protecting against illicit activities and to the promising potential of digital currencies like BTC. The scale is still tipping as the primary conflict stays rooted in striking a balance between regulation and the growth of this nascent industry.
Source: Decrypt
