Cryptocurrency advocate John E. Deaton recently took to Twitter to criticize Bitcoin maximalists for supporting the actions of Gary Gensler, Chair of the Securities and Exchange Commission (SEC). Deaton accused them of abandoning their libertarian views on government overreach for the sole purpose of channeling more money into Bitcoin. The tweet also referenced an article by journalist Eleanor Terrett that sheds light on why some Bitcoin maximalists may sympathize with Gensler. Despite many in the Bitcoin community having techno-libertarian leanings, a sentiment exists among some Bitcoiners, or “maxis,” that Bitcoin is the only true cryptocurrency, while all others are, at best, imitations, at worst scams.
However, not all Bitcoiners agree with this stance. Some fear that “weaponizing the state” may invalidate the legitimacy and reputation of American financial markets. Regardless, the consensus seems to be that Bitcoin and its operations should not expect to be outside the law. Gensler has echoed this sentiment to some extent by arguing that nearly every cryptocurrency, except for Bitcoin, could be classified as a security. Bitcoin, due to its sufficient decentralization, is categorized as a commodity, placing it outside the SEC’s purview.
Deaton’s comments come amid increasing regulatory measures by Gensler, whose stringent approach towards cryptocurrencies has generated significant unrest within the crypto community. The tension has escalated to the point where Rep. Warren Davidson, R-Ohio, has declared his intention to introduce a bill to dismiss Gensler from his post at the SEC.
Meanwhile, the heavy-handed approach of the SEC under Gensler’s leadership is causing ripple effects across the industry. Coinbase (NASDAQ:COIN), one of the largest cryptocurrency exchanges, is reportedly considering relocating its headquarters to London, a jurisdiction seen as more crypto-friendly than the United States.
The SEC’s recent actions have been a cause for concern for many in the cryptocurrency community. While some believe that Bitcoin should be exempt from SEC oversight, others believe that the industry needs to be regulated in order to protect investors and prevent fraud. The debate between those who support Gensler’s approach and those who oppose it is likely to continue for some time, as the cryptocurrency industry continues to evolve and grow.