Messari's Founder Declares "War" Against the SEC, Calls Chairman Gensler Corrupt

In a bold declaration of conflict, Ryan Selkis, the CEO of the analytics company Messari, has announced an "operational war" against the U.S. Securities and Exchange Commission (SEC), setting the stage for a potential upheaval in the financial regulatory landscape. This confrontation stems from Selkis' vehement criticism of the SEC’s approach to cryptocurrency regulation, which he argues is not only ineffective but also illegitimate.

The Declaration of Independence from the SEC

At the core of Messari's new strategy is a document titled "Declaration of Independence from the SEC." This manifesto outlines the company's grievances and plans for future actions to challenge and reform the current regulatory framework governing cryptocurrencies. Selkis has expressed plans to enhance this declaration and submit it to both the SEC and the U.S. Congress, aiming to spark a broader legislative review and reform.

The declaration criticizes the SEC for what Messari perceives as a deviation from its mission to protect investors and maintain fair, orderly, and efficient markets. Selkis has labeled the current SEC leadership as "corrupt, counterproductive, and inept," and argues that the agency has transformed into a self-serving entity that prioritizes the interests of federal employees over those of the citizens it's supposed to protect.

A Strategic Shift in Engagement

Selkis stated that Messari will cease all forms of interaction with the SEC, both formal and informal, until significant reforms are undertaken and leadership changes are implemented. He views the agency as a "hostile adversary, competitor, and unnecessary regulator," indicating a complete breakdown in the traditional cooperative relationship between regulatory bodies and the industries they oversee.

Planned Actions and Legal Challenges

Messari plans to challenge the SEC's legitimacy through various avenues, including court cases, legislative actions, and media engagement. The company will argue that the SEC's current regulatory practices, particularly towards cryptocurrencies, are not only inefficient but are also devoid of legal basis, especially in light of recent court decisions such as Jarkesy and Loper-Bright. These cases have significant implications for the SEC's authority to regulate certain aspects of the cryptocurrency markets.

Selkis also warns that continued compliance with SEC regulations under its current leadership could lead to America losing its leadership position in the burgeoning cryptocurrency sector. Messari believes that it can offer superior global services without the inefficiencies and costs imposed by SEC oversight.

Supreme Court's Recent Decision

This aggressive stance from Messari coincides with a recent U.S. Supreme Court decision at the end of June 2024, which limited the SEC’s powers in administrative proceedings. This decision is likely to bolster Messari's position and may encourage other firms in the cryptocurrency industry to adopt a more confrontational approach towards the SEC.

Conclusion

The unfolding scenario represents a significant escalation in the ongoing debate over cryptocurrency regulation in the United States. As Messari gears up for an operational war against the SEC, the outcomes of this conflict could have far-reaching consequences for the regulatory framework and leadership of the agency. Stakeholders in the cryptocurrency and broader financial markets are closely watching these developments, as they could set precedents for future interactions between regulatory bodies and the industries they regulate.