An open letter to Gary Gensler

Dear Mr. Gensler:

Unlike many of my colleagues in the digital asset industry, I agree with you.

I think you have one of the most difficult jobs in government. Because one of your duties at the SEC is “investor protection.”

The irony, of course, is that investors need to be protected from these risks. themselves.

I believe the SEC seeks to protect investors in two main ways.* reactively (through lawsuits and lawsuits) and Actively (Although there is education and development).

Although numerous SEC lawsuits have made headlines under your leadership (reactive), you suggest that your agency invest more in training (proactive).

Under your leadership, the SEC can focus less on: file a lawsuit and more education.

Here I would like to commend you on some of the training initiatives I have seen under your leadership.

The first was the Office Hours series with Gary Gensler, which has garnered over 250,000 views on YouTube.

The second is Investomania, a viral video campaign with nearly a million views to date.

This video received a lot of ridicule online, but the truth is that everyone mocking it actually saw them.

That’s the point.

It’s easy for students to make fun of their teachers, but who cares? As long as you learn something, the mission is accomplished.

I believe these investments in early education have shown tangible results, and I hope we will increase our investment tenfold, perhaps even hundredfold. Collaborate with influencers. Hire a TikTok star. Meet Sal Khan about this.

Prioritize education over litigation.

The SEC can do more than just viral videos.

When I attended a lecture by your predecessor, Jay Clayton, I was impressed by the educational displays his staff had set up to promote the SEC’s education efforts on Investor.gov.

thisI thought about it, This is a government agency I want to support..

If education is the best way to fight ignorance, then you have tremendous power to fight that ignorance.

You have the clout to open investing classes in schools and teach sound investment principles to high school and college students. You can learn how to identify illegal or unethical investments. They can make better decisions, on a large scale.

By implementing rigorous programs that invest in education in our public schools, we will free future generations from ignorance.

You can also reduce gambling.

The litigation process is very difficult. I understand it’s sometimes necessary, but it feels like a blunt tool with diminishing returns, as evidenced by losses on Coinbase, Binance, and Ripple.

In the cryptocurrency industry where I work, I believe we are under unimaginable pressure from those who hold the levers of power to stop cryptocurrency in its tracks, or at least slow its inexorable march.

Your reluctant approval of spot Bitcoin ETFs is another sign that these forces of change are too strong to overcome. I suggest it’s time to rethink our priorities for the rest of our time at the SEC.

Education, not litigation.

To oversimplify the SEC’s work*, imagine if you were currently spending 95% of your resources on litigation and 5% on training, and switched that to 50/50.

50 Some of the SEC’s efforts could be invested in investor education. It’s harder to tweet offensive comments in the classroom.

This can be a lasting legacy for future generations.

To protect investors, education is the best solution. I am sure you can support this plan. Because of course, you were a college professor.

I believe you have a passion for education deep in your soul. If you’re not interested, why go into education? – And I want you to bring out that passion and let it shine.

This may be counterintuitive to your critics, but it could make you the perfect SEC commissioner for our times. An educator who has truly promoted investor education as a primary initiative rather than a sideshow.

Mr. Gensler, please shift the focus from litigation to education. You have the power and now is the time.

Health, wealth and happiness,

John Hargrave

publisher, Bitcoin Market Journal

* Please forgive me for oversimplifying the SEC’s mission and efforts into three points. investor protection; Maintain fair, efficient and orderly markets. and promote capital formation. But education will help with all three.