SEC Chief Gary Gensler defended his crypto enforcement record in a Thursday speech and hinted at a possible departure from the agency.
When Trump returns to the White House, he has pledged to remove Gensler from his position as SEC Chair.
“I’ve been honored to work alongside my colleagues at the SEC who tirelessly defend American families on the financial highways,” he remarked.
Following Donald Trump’s victory in last week’s US presidential election, Gensler gave his speech. When Trump returns to the White House, he has pledged to remove Gensler from his position as SEC Chair.
When a new administration gains power, the SEC Chair usually resigns. This is particularly significant if a different political party forms the next government. It enables the incoming president to designate a representative who shares their goals.
The Chair’s position frequently changes hands with the presidential transition, even though SEC Commissioners serve staggered five-year terms to ensure some regularity.
Gary Gensler Considers Trends in Crypto Enforcement and Oversight
As he recalled his time at the SEC, Gensler’s tone became contemplative. He pointed out that the SEC, under the leadership of Jay Clayton, had already filed some 80 lawsuits against the cryptocurrency industry, including the Ripple case, when he joined the organization in 2021.
He said that the SEC has just continued to enforce securities regulations with a watchful eye. He also pointed out that since 2018, the crypto sector has continuously accounted for between 5% and 7% of the SEC’s enforcement efforts.
He said he and former Chairman Clayton have repeatedly declared that Bitcoin is not a security.
“Instead, we have concentrated on a few of the roughly 10,000 additional digital assets, many of which have been determined by courts to have been offered or sold as securities,” he stated.
Gensler Highlights His First Approved Bitcoin Futures ETF
He said many crypto ETF applications were rejected or withdrawn before Gensler joined the SEC. Nevertheless, the first Bitcoin futures ETF was successfully introduced after he arrived in 2021.
Gensler remarked, “I’ve been honored to work alongside my colleagues at the SEC who, every day, strive to safeguard American families on the financial highways.”
SEC Chair Gary Gensler is viewed by many in the cryptocurrency industry as being too strict and against their interests. They argue that the SEC has adopted a “regulation by enforcement” strategy under his direction, which they say stifles innovation. This approach must provide a clear regulatory framework to apply the securities laws now in place to digital currencies.