Media accuse Gary Gensler of turning the SEC into a banana republic

The head of the SEC Gary Gensler deserves a place in the United States’ banana republic Hall of Fame. Journalists at the New York Post say so.

The outlet drew parallels between the agency’s policy and the corrupt dictators of peripheral countries who control the economy and jail their opponents.

Such accusations were grounded in the SEC’s chosen enforcement-driven approach to regulating the crypto industry.

The agency proposed to broaden disclosure requirements to include information on how companies address climate change and pursue other progressive policy aims.

The SEC is cast as the “Sheriff of Wall Street,” but he ignored the obvious pump-and-dump in meme stocks, which deprived a generation of retail investors’ savings, the New York Post continued.

Journalists hardened their view that the SEC could be associated with a “banana republic” after the prosecution of the HFT-market maker Virtu for an accounting violation, portrayed as the crime of the century.

The publication noted that the company is led by Doug Sifu, a staunch critic of the agency’s head.

Thanks to Virtu’s data streams, brokers such as Charles Schwab and E*TRADE were able to lower fees for investors, and Robinhood even zeroed them. Unlike other top Wall Street executives, Sifu was always open to revealing how the market works, the journalists emphasised.

Sifu’s stance created discomfort for Gensler, who was nurturing “grand plans to rebuild the stock market.” It was seen as necessary to “win points” at the expense of Wall Street–hatred politicians such as influential Senator Elizabeth Warren.

According to the publication, Sifu openly told the SEC chief that his approach could put investors in a bind — he is trying to “put in order” what is already “working well.” As a result, in September the Commission “uncovered” violations in Virtu’s operations.

The New York Post calls the current attack on the company “unconvincing.” They cited an investigation into the firm in 2018-2019 that did not substantiate the suspicions of wrongdoing.

The publication noted that in most such claims the matter does not go to court. But not in this case, where there is an obvious desire by Gensler to force the company to admit to serious criminal charges.

“Now the case will most likely go to court, where a decision will be made on whether the markets will be allowed to transform into the status of a banana republic,” the journalists concluded.

According to BrightScope co-founder Mike Alfred, citing one regulator insider, Gensler told friends and advisers that he would like to gracefully extricate himself from his “personal Vietnam.” The head of the agency expressed a wish to approve one or more spot Bitcoin-ETF from major fund companies, into which he could move after his resignation.

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SEC insider says chief Gary Gensler has told friends and advisors that he would like to gracefully extricate himself from his “personal Vietnam” by approving one or more spot Bitcoin ETFs from the major fund companies where he hopes to get a job after leaving the agency

— Mike Alfred (@mikealfred) September 17, 2023

User crypto_linn suggested that BlackRock asked the SEC to create FUD in crypto to enter at the bottom and launch an ETF. After that the Commission would soften its position, pension funds would add the asset to their products, halving, monetary policy would ease and by June–November the digital gold would reach a new ATH.

Blackrock tells SEC to fud crypto

Crypto dips

Blackrock buys BTC

Blackrock launches ETF

SEC magically eases off

Pension funds allocate to Blackrock

BTC halving

BTC pumps into QE + rate cut

June — Nov 2025 BTC ath

Rolex + Lambos on timeline

Dump into oblivion pic.twitter.com/MKUsMRUIlU

— ? Crypto Linn (@crypto_linn) June 19, 2023

In September 2023 the head of the SEC confirmed his hard line on digital assets, noting their potential harm to the global financial system.

In August, U.S. Representative Warren Davidson urged the removal of Gensler from the post of head of the agency because of the bungled probe against Grayscale. He was preceded by a partial defeat of the regulator in the case against Ripple.