SEC's Alleged Regulatory Push
A new claim that has the potential to create controversy in the cryptocurrency market has emerged from UniSwap (UNI) founder Hayden Adams. In a conversation with Sam Bankman-Fried (SBF) approximately two weeks before the collapse of FTX, Adams suggested that then-SEC Chairman Gary Gensler was preparing to classify all major cryptocurrencies, including Bitcoin and Ethereum, as “securities.”
Adams shared on social media that SBF had asked him to support a bill that he believed would "destroy" the crypto industry, a request Adams refused. Elaborating on the meeting, Adams indicated that SBF maintained close contact with the SEC and that the institution aimed to establish complete authority over the crypto market.
Details of the Alleged Plan
According to Adams' account, the SEC was considering designating not only Ethereum but also Bitcoin as a security. He further stated that the proposed plan involved FTX obtaining a sole brokerage license in exchange for regulatory compliance, while an institution partnered with FTX would receive a sole exchange license. Under this proposed framework, cryptocurrency trading in the United States would have been legally restricted to FTX.
“The SBF didn't put it that way, but they did say they were in very deep discussions with the SEC, and that the agency wanted jurisdiction over ETH and BTC,” Adams recounted. He also noted that SBF appeared quite tense during their meeting.
Impact of FTX's Collapse
Adams stated that the plan in question completely disintegrated with the collapse of FTX. He commented, “Ironically, the collapse of FTX may have saved the industry.”