SEC Chief Gary Gensler Drops Resignation Hint While Defending Crypto Enforcement Record

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

November 15, 2024

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SEC Chief Gary Gensler hinted he might leave the agency and firmly defended his crypto enforcement record during a Thursday speech at a legal education institute.

“I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance,” he said.

Gensler’s speech comes after Donald Trump won last week’s US presidential election. Trump has vowed to oust Gensler from his role as SEC Chair immediately upon his return to the presidency.

Traditionally, the SEC Chair steps down when a new government takes over. This is especially true if the new administration is from a different political party. It allows the incoming President to appoint someone aligned with their agenda.

Although SEC Commissioners serve staggered five-year terms to maintain some consistency, the Chair’s position often changes hands with the presidential transition.

Gary Gensler Reflects on Crypto Oversight and Enforcement Trends

In his speech, Gensler adopted a reflective tone as he recounted his tenure at the SEC. He noted that when he joined the agency in 2021, the SEC, led by Jay Clayton, had already launched around 80 legal actions against the crypto sector, including the Ripple case.

He added that the SEC has simply maintained this vigilant approach to uphold securities laws. Additionally, he highlighted that since 2018, the crypto industry has consistently represented about 5%-7% of the SEC’s enforcement activities.

He added that both former Chairman Clayton and he have consistently stated that Bitcoin is not a security.

“Our focus, rather, 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,” he said.

Gensler Highlights First Bitcoin Futures ETF Approved Under His Watch

Gensler noted that before he joined the SEC, many applications for crypto ETFs were either disapproved or withdrawn. However, following his arrival in 2021, the first Bitcoin futures ETF was successfully launched.

“I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance,” Gensler said.

Many in the crypto sector see SEC Chair Gary Gensler as excessively stringent and opposed to their interests. They contend that under his guidance, the SEC has taken a “regulation by enforcement” tack, which they believe hampers innovation. This approach involves applying current securities regulations to digital currencies without offering a clear regulatory roadmap.