Messari CEO Challenges SEC Oversight in Strongly Worded Draft Letter

Messari CEO Ryan Selkis declared independence from the US SEC and its “corrupt” Chair Gary Gensler in a draft letter on Sunday. The firm intends to cease engagement with the agency until reforms are implemented and leadership is replaced, he said.

“We now treat the agency as a hostile adversary, competitor, and superfluous federal regulator,” he said in the letter posted to X.

GM.

I've declared independence from the SEC and its corrupt Chair Gary Gensler.

In the months ahead, Messari will be operationalizing a war against this illegitimate and corrupt agency.

The draft below will be polished, improved, then sent to the SEC and Congress.

🇺🇸🇺🇸🇺🇸 pic.twitter.com/okVWKMhDSz

— Ryan Selkis (d/acc) 🇺🇸 (@twobitidiot) July 7, 2024

The SEC didn’t return Cryptonews’ request for comment by press time.

Messari Slams SEC’s Crypto Approach

The SEC has been cracking down on the crypto industry, going beyond just companies that sell digital tokens. Under Chair Gensler, it has targeted platforms, clearing services, and broker-dealer activities. This increased scrutiny is expected to continue. And well-funded crypto firms are pushing back, claiming the SEC is exceeding its legal power.

Selkis said that Messari, a crypto data provider, has tried to work with the SEC, but he sharply criticized its approach. He argued the agency isn’t effectively preventing fraud, pointing to missed cases like FTX and Celsius. Additionally, he claimed the SEC’s legal actions against Coinbase, Kraken, and Gemini seem politically motivated rather than focused on stopping actual fraud.

Messari CEO Calls for a Regulatory Reboot for Crypto

Messari’s Selkis didn’t stop at calling Chair Gensler ineffective. He also suggested that the regulatory chief might be corrupt. He called out Gensler’s lack of clear rules for cryptocurrencies, especially how to define a security. This uncertainty, according to Selkis, is hindering the US crypto market’s growth.

Further, the executive warned that the US will fall behind in the global crypto race if it keeps relying on the SEC’s current approach. He claimed regulators in Europe, the Middle East, and Asia are already way ahead in terms of creating clear rules for cryptocurrencies.

The draft letter will soon be revised and sent to the SEC’s commissioners, as well as Congressional representatives and senators.