Messari CEO Ryan Selkis has launched a scathing critique against the U.S. Securities and Exchange Commission (SEC) in a detailed letter, marking a significant escalation in the ongoing tension between the cryptocurrency industry and regulatory authorities. Selkis's letter, which outlines Messari's legal battle with the SEC, is filled with harsh accusations, including claims of corruption and inefficiency within the agency. He argues that the SEC, under its current leadership, has become more of a self-serving entity rather than a protector of market integrity and investor interests. This bold stance signals a pivotal moment in the crypto sector's fight for regulatory clarity and fairness.
Harsh Statements Against the SEC
Selkis stated that the U.S. Securities and Exchange Commission is no longer a serious or respectable federal institution, describing the current Chairman as corrupt, inefficient, and incompetent. Modern technologies make its usefulness at best debatable. The following statements reflect Selkis’s salvos:
"And worst of all, it seems to exist only to benefit itself and its federal employees, rather than protecting citizens from fraud and abuse, monitoring and improving the health of markets, and promoting capital raising organizations."
Selkis stated that for the above reasons, Messari will not engage with the SEC in any official or unofficial capacity until reforms are made and leadership changes. His statements were again extremely harsh:
"We now treat the institution as a hostile adversary, competitor, and unnecessary federal regulator."
Selkis Emphasizes a Decision Point for the Situation
After years of research and development efforts and initiatives with SEC personnel, Selkis stated that they decided to declare their independence from the SEC regarding information reporting solutions for the cryptocurrency markets and challenge the institution’s legitimacy.
While enjoying constructive and efficient working relationships with other regulators worldwide, Selkis emphasized that such a path is not possible with the SEC. Instead, their teams will aggressively compete to provide better, faster, and cheaper information reporting for cryptocurrency markets.
Selkis noted that the scope of their mission at Messari has significantly expanded in recent months. He believes that public blockchains will ultimately be used globally to issue and settle all types of financial assets and that their designs and inherent transparency will significantly change disclosure norms for public market investors across asset classes. He commented:
"Given modern technologies like cryptocurrency, artificial intelligence, and social tools, we believe private market actors are better positioned to meet this public need than government service providers. Additionally, well-funded and targeted investigative journalism will prove (and has already proven) more timely and effective in uncovering fraud and abuse than top-down regulatory structures."
What’s Next?
In the coming weeks and months, the SEC’s legitimacy will be fully challenged through courts, Congress, and the media. Ryan Selkis plans to present the following arguments and reveal some important fundamental facts to the American investing public. The arguments are as follows:
The SEC’s Approach to Crypto is Ineffective
The institution’s current approach to crypto markets fails to detect costly (alleged) frauds at FTX, Celsius, Genesis, and other U.S. market participants, while lawsuits against legitimate actors like Coinbase, Kraken, and Gemini seem more like political targeting than fraud prevention.
SEC Chairman Gary Gensler is Not Only Incompetent but Also Corrupt
Chairman Gensler’s inability to articulate a rational or consistent approach to market regulations for crypto, including how to determine if a particular asset has the critical features of a security, creates a chilling effect on the development of crypto markets in the U.S. Increasing legal losses weaken faith in the integrity of the SEC’s work. Evidence of corruption and misconduct allegations against the Chairman undermines faith in his ability to set the agenda for this federal institution during his tenure.
After the Jarkesy and Loper-Bright Decisions, the SEC Has No Legitimate Claim to Regulate Crypto Markets
Lawsuits against the SEC by the crypto space have gained significant strength in recent weeks following two Supreme Court decisions that weakened the institution’s internal administrative courts and Chevron deference. There are open questions under the major questions doctrine regarding whether the institution has the legal authority to regulate crypto markets.
Continuing to Respect the SEC Will Ensure America Loses Its Leadership in the Crypto Space
Regulators in Europe, the Middle East, and Asia are far ahead of American financial regulators in technical sophistication and rule-making for crypto markets. The result is clear guidance for entrepreneurs and technical innovators increasingly choosing to develop the future rails of finance and the internet overseas. This dynamic will increasingly jeopardize broad swaths of the American economy and the U.S. dollar itself.
Messari Already Provides a Superior Global Service to the Market Without Taxpayer Expense
Our founder and broader research team have directly helped uncover financial troubles and/or frauds at many of the largest crypto financial service companies in history. These include the Mt. Gox bankruptcy, FTX bankruptcy and fraud allegations, Genesis Capital bankruptcy and fraud allegations, and others.
Ryan Selkis’s challenge shared on X will likely be a cornerstone in the fight against the SEC in the coming times.
The post first appeared on COINTURK NEWS: Messari CEO Criticizes SEC in Detailed Letter
