Jamal Al-Farouq Amidst the legal dispute between Binance and the U.S. Securities and Exchange Commission (SEC), lawyers representing Binance have put forth a claim that Gary Gensler, the current SEC chair, once expressed a desire to become an advisor for the exchange in 2019. These allegations stem from a time when Gensler was a professor at the Massachusetts Institute of Technology (MIT) and was actively involved in discussing the crypto network Algorand during a blockchain seminar.
The emergence of these alleged past ties between SEC Chair Gensler and Binance raises ethical concerns, as legal representatives from Gibson Dunn and Latham & Watkins, who are defending Binance against the SEC’s 13 charges, contend that Gensler had engaged in multiple conversations with Binance executives in March 2019. They further claim that Gensler even had a meal with Changpeng Zhao (CZ), the founder of Binance, during a trip to Japan.
It is important to note that at the time of these alleged interactions, Gensler was not serving as the SEC chair but was instead a faculty member at MIT’s Sloan School of Management, where he conducted seminars on blockchain. Lawyers from Gibson and Latham argue that CZ and Gensler maintained contact following their meeting in Japan. However, the SEC responded to these claims, assuring CNBC that Gensler is fully aware of his ethical responsibilities, including any obligations to recuse himself if necessary. The agency stated:
“Chair [Gary Gensler] is very familiar with and in full compliance with his ethical obligations, including any recusal obligations.”
This is not the first time Gensler has faced allegations of pre-judgment and breaching recusal commitments. In an interview with Ankush Khardori of New York Magazine’s Intelligencer, Stuart Alderoty, the chief legal officer of Ripple, argued that Gensler should recuse himself from voting on enforcement cases related to the issue at hand. Alderoty believed that Gensler had already formed a bias on the matter.
Furthermore, Gensler has faced criticism from the cryptocurrency community for what they perceive as his endorsement of Algorand (ALGO). In a notable video from MIT, Gensler referred to Algorand as a “great technology” and suggested its potential use in a system similar to Uber. Some individuals interpret Gensler’s remarks as an endorsement of ALGO, drawing comparisons to Kim Kardashian’s promotion of EMAX.
What are your thoughts on the alleged past connections between SEC Chair Gensler and Binance? We invite you to share your opinions on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about SEC Chair Gensler, Binance, alleged ties
What are the allegations regarding SEC Chair Gensler and Binance?
Lawyers defending Binance have alleged that SEC Chair Gary Gensler expressed interest in advising Binance back in 2019 when he was a professor at MIT. They claim that he had conversations with Binance executives and even dined with the founder, Changpeng Zhao, in Japan.
Was Gensler in a position of power at the SEC during these alleged interactions?
No, at the time of these alleged interactions, Gensler was not the SEC Chair. He was a professor at MIT’s Sloan School of Management, conducting blockchain seminars.
What ethical concerns have arisen from these allegations?
These allegations have raised concerns about Gensler’s ethical responsibilities and potential biases. The lawyers defending Binance have accused Gensler of breaching recusal obligations, while the SEC has assured that Gensler is fully aware of his ethical obligations.
Has Gensler faced similar allegations before?
Yes, Gensler has previously faced allegations of pre-judgment and breaching recusal commitments in other cases. Ripple’s chief legal officer once called for Gensler to recuse himself from voting on enforcement cases related to the matter.
What is the significance of Gensler’s endorsement of Algorand?
Gensler’s perceived endorsement of Algorand has drawn criticism from the cryptocurrency community. Some view his remarks as an endorsement of ALGO, similar to a celebrity promoting a product, raising questions about impartiality and potential conflicts of interest.
More about SEC Chair Gensler, Binance, alleged ties
- SEC – Official website of the U.S. Securities and Exchange Commission.
- Binance – Official website of Binance, a cryptocurrency exchange.
- Massachusetts Institute of Technology (MIT) – Official website of MIT, a renowned university where Gensler was a professor.
- Algorand (ALGO) – Official website of Algorand, a cryptocurrency network mentioned in the text.
- Gibson Dunn – Official website of Gibson Dunn, one of the law firms defending Binance.
- Latham & Watkins – Official website of Latham & Watkins, another law firm defending Binance.
- New York Magazine’s Intelligencer – Online platform featuring news and articles, where Ankush Khardori’s interview with Gensler was published.
- Ripple – Official website of Ripple, a cryptocurrency company whose chief legal officer criticized Gensler in the past.
