How it all started
On July 3, 2023, a shocking news article appeared on the internet, claiming that Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), was resigning from his position following an internal investigation. The article cited an anonymous SEC official as the source of the information and provided details about Gensler's alleged misconduct and the reasons for his departure.
The article quickly went viral on social media platforms, especially among the crypto community, which has been at odds with Gensler and the SEC over their regulatory approach to digital assets. naturally many crypto enthusiasts celebrated the news as a sign of hope for a more favorable regulatory environment in the United States and a boost for the crypto market.
However, something was not right about the article. It had no author, no date, no publisher, and no verifiable facts. It also contained grammatical errors, inconsistent formatting, and dubious claims. It turned out that the article was nothing but a hoax, generated by an artificial intelligence (AI) program that can create fake news stories based on keywords.
How It Was Debunked
The SEC was quick to respond to the rumors and confirm that Gensler was not resigning. Fox Business Network reporter Charles Gasparino tweeted on July 3 that he had contacted the organization and they had denied the resignation story. He also pointed out that the article was likely fabricated by an AI program.
Other media outlets also investigated the source of the article and found out that it was generated by a website called Fake News Generator, which allows anyone to create realistic-looking news articles based on keywords and topics. The website claims to use natural language processing (NLP) and deep learning techniques to produce realistic texts but also warns users that the generated content is not factual and should not be used for malicious purposes.
The website also provides a disclaimer at the bottom of each generated article, stating that it is "a satirical parody" and that "any resemblance to actual persons or events is purely coincidental". However, this disclaimer was either removed or overlooked by whoever created and shared the fake news article about Gensler's resignation.
What's really needed
The incident exposed the dangers of AI-generated fake news and how easily it can spread misinformation and influence public opinion. It also highlighted the need for more media literacy and critical thinking among consumers of online information.
But more importantly, it also revealed the frustration and dissatisfaction of the crypto community with the current state of regulation in the U.S. Many crypto investors and entrepreneurs feel that Gensler and the SEC are too hostile and restrictive towards innovation and growth in the crypto space. They accuse the SEC of using "regulation by enforcement" instead of providing clear and consistent guidance on how to comply with existing laws.
They also argue that the SEC is favoring institutional investors over retail investors, by making it harder for ordinary people to access crypto products and services, such as exchange-traded funds (ETFs), lending platforms, stablecoins, and decentralized applications (DApps). They claim that the SEC is stifling innovation and competition in the crypto market while allowing Wall Street firms to dominate and manipulate it.
What's really needed, according to many crypto advocates, is fair and balanced regulation that protects investors' rights and interests, while also fostering innovation and growth in the crypto industry. They call for a regulatory overhaul that involves more collaboration and dialogue between regulators, lawmakers, industry players, and consumers. They also urge Gensler and the SEC to adopt a more open-minded and forward-looking approach to crypto regulation, instead of clinging to outdated and rigid frameworks.
Conclusion
The rumors of Gary Gensler's resignation were false, but they revealed a deeper truth: The crypto community is disappointed with the way things are going in terms of regulation in the U.S. They want more clarity, certainty, fairness, and flexibility from regulators like Gensler and the SEC. They want regulation that supports innovation and growth in the crypto space, not regulation that hinders it.
Whether Gensler and the SEC will listen to their concerns and address them remains to be seen. But one thing is clear: The crypto community will not give up on their vision of a more decentralized, democratic, and inclusive financial system. And they will continue to fight for their rights and interests in the face of regulatory challenges.
Matt is the founder of TechMalak. When he's not buried face-deep in the crypto charts you can find him tinkering with the latest tech gadgets and A. I tools. He's a crypto investor and entrepreneur. He uses a mixture of A.I and human thought and input into all his articles on TechMalak, further merging man with machine.
