The SEC Calls BS on OpenVPP: What Went Wrong & Why No One Should Be Surprised

You ever see someone at a party corner the one famous person in the room, snap a quick photo, and then post it online like they’re best friends planning to launch a new business together? It’s a special kind of cringe. It’s desperate, it’s transparent, and it’s exactly what the crypto world has perfected into an art form.

This week’s masterpiece comes to us from a company called OpenVPP.

On September 15th, these guys were apparently in Chicago for one of the SEC’s new "Crypto on the Road" roundtables. You know, where the government pretends to listen to the little guys. Their CEO, Parth Capadia, managed to get a picture with SEC Commissioner Hester Peirce—the one everyone calls “Crypto Mom” because she’s seen as the industry’s friendly face inside the regulatory machine.

So what do they do with this golden photo-op? They slap it on X (formerly Twitter, a place where good ideas go to die) with a caption that is so breathtakingly audacious I almost have to respect it.

“Excited to announce that we are working alongside [Commissioner Peirce] and the U.S. Securities Exchange Commission on the Tokenization of Energy.”

Let’s just pause and savor that phrase. “Working alongside.”

That’s not an accident. That’s not a typo. That’s a carefully chosen piece of corporate doublespeak designed to scream “WE ARE LEGIT, THE GOVERNMENT LOVES US” without technically saying it. It’s the kind of language a weasel in a suit uses to imply a partnership that doesn't exist. It’s slimy. It's pathetic. And it worked, for about five minutes.

Because Hester Peirce herself, Crypto Mom, came down from on high and delivered a public spanking right there on the timeline.

“I welcome the chance to meet with crypto projects… but I do not ‘work alongside’ or endorse private crypto projects or firms.”

Ouch.

That ain't an endorsement, buddy. That’s the polite, bureaucratic version of “Get my name out of your mouth.” And what did OpenVPP do in the face of this public correction from one of the most powerful people in their industry? Did they apologize for the misunderstanding? Did they clarify their statement?

Nope. They just hid her reply.

You can’t make this stuff up. They tried to memory-hole the public refutation. They just clicked a button and hoped nobody would notice that the person they claimed to be “working alongside” had, in fact, told them to get lost. It’s the digital equivalent of putting your fingers in your ears and yelling “LALALA I CAN’T HEAR YOU.”

This whole tour is just a PR stunt. No, ‘stunt’ is too simple—it’s a calculated tightrope walk. The SEC, under fire for its “regulation by enforcement” sledgehammer, wants to look like it’s engaging, listening, and fostering innovation. So they send Peirce out on this cross-country listening tour, specifically asking to hear from small startups with 10 or fewer employees. They want to hear about the “regulatory challenges” from the people “building the future.”

It’s a nice story. A real feel-good narrative. But what does it actually mean?

It means you get a room full of desperate founders, all scrambling for a shred of validation. Look at the list of attendees in Chicago: 0xMiden, XKOVA, PawChain. Ever heard of them? Me neither. They’re all just like OpenVPP, trying to get a slice of the pie. And in a world where one tweet can pump your coin to the moon, a photo with an SEC commissioner is pure, uncut rocket fuel. Offcourse they’re going to try and spin it.

It reminds me of my brief, soul-crushing stint writing ad copy years ago. The client, a company selling some useless kitchen gadget, wanted to say their product was “doctor recommended.” When I asked which doctor, they sent me a blurry photo of some guy in a lab coat they’d paid $50 to hold the product. Same energy. Different industry.

The SEC puts out these disclaimers, you know. Dry, boring text on their website saying an invitation “does not serve as an endorsement.” But who reads that? Nobody. They see the photo. They see the words “working alongside.” And the narrative is set. OpenVPP knew that. They were counting on it.

Some analysts are now pointing out that most of the accounts hyping up OpenVPP are known crypto marketing accounts. Shocking, I know. It's almost like the whole thing was a coordinated promotional push built on a lie. They post this picture, all smiles, thinking they've won the lottery, and for a second, maybe they had...

But here's the real question: does anyone at the SEC actually think this tour will lead to better policy? Or is this just theater? They’ve met with over 300 companies since February, from giants like Coinbase and Kraken to these tiny outfits. Are they really gathering useful data, or are they just creating a stage for grifters and dreamers to perform on?

Then you have SEC Chair Paul Atkins giving speeches in Paris about a “golden age of financial innovation” and promising “clear and consistent guidance.” It’s a classic good cop, bad cop routine. Atkins promises the moon while the enforcement division is still suing everyone in sight. And in the middle, you have Hester Peirce on this goodwill tour, which just ends up giving ammo to clowns like OpenVPP. It’s a mess.

Then again, maybe I’m the crazy one here. In an industry built entirely on hype and the Greater Fool Theory, maybe this is just how the game is played. You fake it, you pump it, you hope you get rich before the whole house of cards comes down. OpenVPP just got caught playing the game a little too obviously.

They aren’t the disease. They’re just a symptom.

Just Another Day at the Circus

Honestly, what did anyone expect? You dangle the carrot of regulatory legitimacy in front of a pack of starving rabbits, and you’re surprised when one of them tries to snatch it and run? This isn’t a sign of a broken system. This is the system. It’s a chaotic, cynical, clout-chasing free-for-all, and the regulators are just the clueless ringmasters who occasionally have to crack the whip when one of the animals gets too far out of line. Don't pretend this is about "dialogue." It's about appearances, and OpenVPP just committed the cardinal sin of making everyone look bad.

Reference article source：

• OpenVPP Price: OVPP Live Price Chart, Market Cap & News Today
• Crypto Task Force Tour Continues as Hester Peirce Denies Endorsing OpenVPP
• SEC commissioner Hester Peirce did not endorse OpenVPP despite meeting