US House Representative Tom Emmer has recently issued a statement claiming that his office has opened an investigation into Gary Gensler. The subject of the inquiry is the purported implication of the involvement of the SEC with the cryptocurrency exchange FTX.
To this end, Emmer has told media that his office has received the reports about the SEC chief working in cahoots with FTX CEO SBF. This illegal and politically biased cooperation aimed to maintain a regulatory bias within the cryptocurrency community.
At present, a Pandora’s Box of conspiracies has been opened for the financial and political strategies of FTX. This exchange market is said to have major problems with its capital allocations.
However, it managed to sit alongside Binance, the largest cryptocurrency exchange in the world. Emmer has told media that SEC chief Gary Gensler has resorted to clearing his name through media exposure.
The legislator claims that as soon as the news about Gensler’s involvement with SBF came to light, he hastened to justify his position in front of media outlets. The allegations suggest that Gensler helped SBF find legal loopholes to obtain the regulatory monopoly.
SEC Chief Rejects Allegations
To address the issue, Gensler has appeared in a CNBC talk show, Squawk box. He talked about the ongoing collapse of FTX and Alameda Research. He claimed that the world of cryptocurrencies is interconnected, and there are not many players to balance out the equation.
On the other hand, he also claimed that there are several networks of toxic combinations, such as a lack of transparency. Therefore, the assets of the consumers and the leveraged positions are never clear.
As soon as markets turn sour, these facts jump out of the dark. He claimed that such is the case with cryptocurrency markets, and thus many people have turned against him since he is responsible for losing a lot of money related to his users.