The Blockchain Association has asked SEC Chairman Gary Gensler to step down from the regulatory process, accusing him of showing “clear bias” against the industry.

Senior Advisor Marisa Koppel I have written Mr Gensler’s statement today declaring that all cryptocurrencies other than Bitcoin are securities is that he “prejudged the facts” without properly assessing the evidence and data and said that “Chairman Gensler’s goal is the United States. It is to make virtual currency illegal.”

She argued that this was made clear by recent SEC enforcement actions against established cryptocurrency companies like Coinbase, despite repeated calls for guidance and clarity from the industry.

Koppel said the SEC would “abandon its role as a rule-making body” and give the industry the clarity it needs about securities law and how it applies to various products and services within the industry. said he refused. Instead, regulators opted for “over-enforcement.”

she wrote:

“Such apparent biases and such a failure to follow basic principles of due process prevent government agencies from fairly overseeing the digital asset industry.”

Violation of Due Process

Koppel alleges that the SEC’s decision to initiate enforcement action against Coinbase demonstrates a violation of due process by Gary Gensler. This alleged violation is linked to the so-called Wells Process, which requires companies subject to enforcement action to be notified of the alleged violation and given an opportunity to respond to the allegation.

Following the Wells process, a vote by SEC Commissioners will determine whether enforcement action will be taken. Koppel said it was important for the Commissioners to make this decision without any prejudices.

Nevertheless, Koppel argues that Gensler prematurely determined that all cryptocurrencies, except bitcoin, were securities. In Koppel’s view, this suggests an inherent bias and is inconsistent with the duty of impartiality in deciding to initiate an enforcement action against a company.

As such, regulators cannot remain neutral in voting on whether to take enforcement action, she argued, and doing so in the Coinbase case violated due process.

She wrote that “Chairman Gensler’s vote on whether to take enforcement action is full of prejudice.”

Coppell used the precedents set in cases such as American Cyanamid Co. v. FTC and Cinderella Career & Finishing Schs., Inc. v. FTC to strengthen his case against the SEC chairman. Both lawsuits concluded that officials must resign if they were prejudiced about the facts anyway.

The Blockchain Association’s post, calling for Gensler’s withdrawal from the cryptocurrency enforcement decision, first appeared on CryptoSlate.

By Jules

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