Gary Gensler May Soon Leave the SEC
US Securities and Exchange Chairman Gary Gensler’s tenure at the agency’s helm may be drawing to a close. He hinted as much on Thursday, delivering what observers view as a farewell address to a legal education forum. His remarks highlighted the contentious relationship between the nation’s top securities regulator and the cryptocurrency industry.
“It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world,” Gensler said of the commission’s staff.
His term, marked by intensive crypto industry oversight, saw more than half of the SEC’s digital asset enforcement actions since 2015, according to venture capital firm Paradigm’s analysis. While cryptocurrency executives criticized this approach as excessive regulation, Gensler emphasized its limited scope.
“Our focus has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities,” Gensler said, noting this represented “less than 20 percent of the whole crypto market.” He specifically mentioned never considering Bitcoin as a security.
The chairman highlighted achievements including the introduction of crypto-backed exchange-traded funds, which he said provided investors with disclosure requirements, oversight, and reduced fees compared to unregulated markets. However, he expressed continued skepticism about the sector, citing “significant investor harm” and limited proven uses beyond speculation.
The announcement came the same day 18 Republican state attorneys general filed a federal lawsuit against Gensler and the SEC, challenging what they describe as regulatory overreach in cryptocurrency enforcement. Led by Kentucky Attorney General Russell Coleman, the lawsuit argues the SEC has attempted to “unilaterally wrest regulatory authority away from the States” without congressional authorization.
President-elect Trump in July appeared at Bitcoin 2024 where he promised to make the US the “crypto capital of the planet” and pledged to remove Gensler. While Trump cannot directly fire Gensler, SEC chairs traditionally resign when new administrations take office.
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