Crypto And US Stocks Crises? Gary Gensler’s Leaked Memo Hints

Market experts have always warned about a potential crypto and US stock crisis, however, a leaked memo from the US SEC regulator shows Gary Gensler might agree to this notion. Caitlin Long, the CEO of Custodia Bank blew open the memo that suggests the Commission tried to downplay current market crisis.

Does Gary Gensler Know What We Don’t?

The internal memo from the United States Securities and Exchange Commission (SEC) shows a part of Chairman Gensler’s planned speech. As first shared on X by Bank Reg Blog, the commission mistakenly uploaded its own internal memo online.

In the document, the Chairman appeared to be talking about assessing some market strategies and see their efficacy. The speech sounded like Gensler’s as he noted that he has worked as both a regulator and as a professional in the capital markets. This arguably gives him the leverage to address the identified concerns.

What the crypto community is now shining the beam on is on an earlier paragraph. Here, it was “strongly recommended” that the US SEC Chair make a sentence to show that his speech does not mean “there is an imminent crisis.”

This advise has sparked speculations that shows the market might have more turmoil than meets the eye. While the signs are there, the US stock market flashed recession signs again over the weekend, further shedding light on the Gary Gensler speech.

Known as a strong advocate for a safe market, the US SEC Chair has lost trust among many in the crypto market. Based on the speech leak, it remains unclear whether the regulator will still proceed with the version of the leaked document or not. For now, the Commission has redacted the document on its website.

Potential US SEC Restructuring Ahead

Gary Gensler took over the leadership of the commission from Jay Clayton and inherited the now concluded Ripple versus SEC lawsuit. Despite the criticism on how this legal battle started, Gensler expanded its scope before the latest $125 million penalty levied on Ripple.

Despite the pat in the back he has received from Democrat Politicians, Donald Trump plans to fire the SEC Chairman if he wins re-election. However, this remain a long-stretch as the coming election remains open despite the Polymarket stats for both Trump and Kamala Harris.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.