SEC Chairman Gary Gensler announced amendments to the rules governing the agency’s whistleblowing program.
However, crypto users have called the program hypocritical, especially due to recent actions in the SEC v. Ripple lawsuit.
What are the changes to the Whistleblowing Program?
of Whistleblowing program was founded in 2010 and has “greatly helped” the SEC’s goal of protecting investors, Gensler said.
The SEC has spent approximately $1.3 billion in rewards to whistleblowers who provided information used to take compliance action against “securities law violators.”
“The SEC has used whistleblower information to sanction more than $5 billion from securities law violators, return more than $1.3 billion to aggrieved investors, and defend against whistleblower services. awarded more than $1.3 billion.”
The SEC has made two amendments to its whistleblowing program. The first change is to “expand the circumstances” under which whistleblowers can be paid. The second relates to the SEC’s authority to review and adjust amounts granted.
“This gives whistleblowers additional comfort in knowing that the commission will not reduce compensation based on size.”
The amendment is expected to encourage whistleblowers to move forward by making rewards for information more likely and financially valuable.
Crypto users blow up Gensler
Social media commentators criticized Gensler and the SEC and renewed their calls for the chairman to step down from his SEC management position.
A common theme related to the failure of government agencies to protect investors. naked shorts — This refers to the illegal act of shorting an asset without confirming its existence. Naked shorts can potentially force prices downwards.
Twitter influencer @CryptoBull2020 took things a step further by calling for a whistleblower program to thwart SEC corruption allegations. In particular, @CryptoBull2020 said that the situation surrounding XRP has been wrongfully accused of violating securities laws.
We need a whistleblowing program that considers the corruption surrounding Hinman, Clayton, and Ethereum and the damage they cause. #XRP Investor!
—CryptoBullXRP (@CryptoBull2020) August 29, 2022
In 2018, Hinman gave a speech greenlighting Bitcoin and Ethereum as compliant with securities regulations. However, during the ongoing lawsuit against Ripple, Hinman retracted his comments, personal opinion Should not be construed as equivalent to SEC policy.
Hinman has also been accused of linking to Ethereum through Simpson Thatcher, the Ethereum Enterprise Alliance firm who pays him a large pension.
