SEC Chair Gensler's Prior Endorsement of Algorand Contradicts Recent Unregistered Security Claim

Last updated on April 22nd, 2024 at 02:55 pm

A video of Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), praising Algorand has resurfaced on Twitter following the SEC’s declaration that ALGO, the Algorand blockchain’s native token, is an unregistered security.

A Video of Gary Gensler, Chair of U.S SEC Praising Algorand

The video is from a “Fintech Beyond Crisis” conference held at the Massachusetts Institute of Technology in April 2019, where Gensler spoke positively about Algorand’s intelligent contract platform and its potential for supporting a high-performance contract network. During his speech, Gensler acknowledged Silvio Micali, Algorand’s founder, who was present at the event and is a former colleague of Gensler’s from MIT.

The SEC’s recent actions against Bittrex, a crypto trading platform, included a lawsuit alleging that ALGO was an unregistered security, specifically targeting the Algorand Foundation’s ICO of ALGO in June 2019.

Gary Gensler was SHILLING $ALGO and now he’s trying to call it a security.
This dude is all over the place, and he’s gotta go ➡️ pic.twitter.com/JmpL9xAZhq
— MASON VERSLUIS 🏆🔮 (@MasonVersluis) April 17, 2023

Mason Versluis, a cryptocurrency researcher, took to Twitter to criticize Gensler for having previously endorsed ALGO in light of the SEC’s recent actions with other crypto community members accusing Gensler of being hypocritical.

Cinneamhain Ventures partner Adam Cochran was prompted to question the advice of Gensler, which has long recommended that crypto companies register with the regulator, after watching the video.

Cochran stated that if there is a way to register, a highly regarded MIT professor who has a personal relationship with the chairman of the SEC can surely figure it out or even directly contact the chairman. However, instead of relying on established precedent, the SEC’s complaint contends that “securities are adaptable and encompass cryptocurrency assets.”

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Further, rather than take action against Algorand (and the other tokens outlined in the complaint) directly, allowing them to defend themselves, they’ve been merely called out as securities in another case.
An utter violation of due process.
— Adam Cochran (adamscochran.eth) (@adamscochran) April 17, 2023

On April 17, DeFi Planet reported that Congressman Warren Davidson, from Ohio’s 8th District, announced plans to introduce legislation that could lead to the removal of Gary Gensler from his position as SEC chairman.

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