Citadel Securities & Citadel Market Maker has accused Gary Gensler, chairperson of the U.S. Securities and Exchange Commission (SEC), of market manipulation. As a result, Gensler is facing heavy criticism. Recently, Gensler propelled cryptocurrency trading platforms to get registered with the Wall Street regulator.
A Change.org petition is started against the SEC chair. Gensler is alleged of shorting crypto-focused stocks such as GameStop and AMC Theatres through BlackRock and Vanguard Group
The partition demands Gary Gensler, the SEC chairman, to present his resignation. The reason it says is that he failed to protect retail investors from fraud due to “naked short selling and dark pool abuse” by Citadel Securities & Citadel Market Maker.
Gensler said in a video published earlier that he has told the SEC’s staff to perform collaboration with crypto exchanges ensuring that they are regulated like securities exchanges.
Gary in a tweet stated that the agency has some rules. These rules are devised to protect the market integrity and offer security against fraud & manipulation. People are likely to have greater confidence in the market if a crypto market is created where investors are protected and it is designed to meet the standard of the agency. The petition named ‘Fire Gary Gensler as SEC Chairman for obstruction of justice has received approx. 19,000 votes, as per this writing.
In other news, in an interview, the SEC chair criticized crypto lending platforms for offering unrealistic yield rates. The chairperson says there ‘a lot of risk may well be embedded in that.’ According to him, the yields offered by these platforms are ‘too good to be true kinds. These comments by the chairperson came when prominent crypto platforms such as Three Arrows Capitals and Celsius are declared bankrupt.
Source: https://www.thecoinrepublic.com/2022/08/03/secs-chair-gary-gensler-is-accused-in-market-manipulation/