Did Gary Gensler Want to Crash the Crypto Market?

Former U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has long been criticized for the traces he left in the crypto market. Especially in recent days, many claims have emerged on this topic. It is alleged that Gensler tried to weaken the crypto market under “Secret Strategies” and even that he might have been involved in a private agreement with FTX founder Sam Bankman-Fried (SBF), one of the causes of the major collapse.

What Are the Claims?

1. Sam Bankman-Fried and Bobby Adams Meeting
   According to the claim, a meeting took place between SBF and Bobby Adams prior to the FTX era. If you are wondering who Bobby Adams is, he is a player in the crypto sector. In the meeting, it was mentioned that SEC Chairman Gensler was planning to classify major cryptocurrencies, including Bitcoin and Ethereum, as “securities.” If this plan had been realized, it would have imposed a heavy burden on the crypto market. The outcome would have been a significantly broad and comprehensive authority for the SEC over the crypto market.

2. Making FTX a Leader Through a Single License
   The situation had become so intense that the push for everything to be done through FTX grew stronger every day. There was a plan in place, which aimed for FTX to legally dominate all crypto trading in the U.S. What did this plan entail? It was actually quite clear: FTX would obtain the sole brokerage license, and the ongoing institution associated with SBF would receive the exclusive exchange license. Thanks to this arrangement, virtually all legal crypto trading in the U.S. would have been conducted exclusively through FTX.

3. Was There Really a Plan to Collapse the Sector?
   According to Bobby Adams, SBF was engaged in very deep discussions with Gensler. SBF wanted the SEC to have full control over BTC and ETH in exchange for dominating the U.S. market. Before the major collapse, SBF asked Bobby Adams to support regulations that could harm the crypto market. However, Bobby Adams opposed and did not support this initiative requested by SBF.

4. Did the FTX Collapse Foil Gensler’s Plan?
   Ironically, Bobby Adams notes that the collapse of FTX ended up benefiting the crypto market, preventing the plan from being executed. According to him, if FTX had remained operational, the SEC’s aggressive control plan could have been implemented much more easily.

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Could Gary Gensler Have Done This?

The claims are indeed significant. However, considering the crypto market is a vast sector, the possibility of such an operation cannot be entirely dismissed. Looking back at Gensler’s past public statements, there are clear contradictions. For example:

• Gensler repeatedly stated that Bitcoin is not a security. In a 2018 speech, he mentioned that Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are not securities.
• Emphasizing investor protection, the SEC’s objective has always been to eliminate illegal and unregistered token projects.
• In a recent interview, Gensler stated, “The SEC has never classified BTC and ETH as securities.”

Gary Gensler’s stance contradicts all the claims made by Bobby Adams. However, these claims have not yet been officially refuted.

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