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Is Gary Gensler Being Shown the Door?

Is Gary Gensler Being Shown the Door?

Gary Gensler just read what sounded like a resignation speech, and we’ve learnt that 18 states are suing the SEC for unconstitutional overreach and unfair persecution of the crypto industry

In the wake of President-elect Donald Trump’s victory, speculation has intensified regarding the future of SEC Chair Gary Gensler, particularly concerning his regulatory approach toward cryptocurrencies. Gensler, known for his stringent stance on digital assets, has been a central figure in shaping the SEC’s policies in this rapidly evolving sector.

During his tenure, Gensler has emphasized the need for robust oversight of the cryptocurrency market, often citing investor protection and market integrity as primary concerns. This approach has led to several high-profile enforcement actions against major crypto exchanges and a firm stance on classifying many digital assets as securities.

In an address today at the Practising Law Institute’s 56th Annual Institute on Securities Regulation, Gensler reiterated his commitment to the effective administration of securities laws, stating, “I believe our securities laws have significantly contributed to our nation’s great economic success these last 90 years.”

However, with the incoming administration signaling a potential shift toward more crypto-friendly policies, questions have arisen about Gensler’s future at the SEC. Reports suggest that President-elect Trump is considering appointing a new SEC chair who may adopt a more lenient approach toward digital assets. Candidates such as Dan Gallagher, Chief Legal Officer at Robinhood and a former SEC commissioner, are reportedly under consideration.

The crypto industry has had a complex relationship with Gensler’s regulatory approach. While some stakeholders appreciated the push for clarity and consumer protection, others criticized the SEC’s actions as overly aggressive and stifling innovation. Notably, the SEC’s lawsuits against leading exchanges like Coinbase and Binance were seen as pivotal moments that underscored the agency’s commitment to enforcing securities laws within the crypto space.

At Bitcoin Nashville earlier this year, Trump said, “On day one, I will fire Gary Gensler and appoint a new SEC chairman,” Trump said as the crowd went nuts. “I didn’t know he was that unpopular. Let me say it again. On day one, I will fire Gary Gensler.” 

Source: X

18 States Sue SEC and Gensler

Eleanor Terrett, a Fox Reporter reported today that 18 U.S. states have filed to sue the SEC and its commissioners, accusing them of unconstitutional overreach and unfair persecution of the crypto industry under the leadership of agency chief Gary Gensler.

The lawsuit, signed by 18 Republican Attorneys General, details how the agency has committed “gross government overreach” with its regulation by enforcement crusade against the $3 trillion industry, resulting in an infringement upon states’ rights to regulate their economies. 

Source: X 

Gensler’s Address, The Long Goodbye?

Gensler said today, “When I arrived in 2021, the Commission under Chairman Jay Clayton had already brought some 80 actions, including the Ripple case, against participants in the crypto markets that were not following the common-sense rules of the road.

Court after court has agreed with our actions to protect investors and rejected all arguments that the SEC cannot enforce the law when securities are being offered—whatever their form. Not every asset is a security. Former Chairman Clayton and I have both said that Bitcoin is not a security, and the Commission has never treated Bitcoin as 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. Putting this in context, aside from bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion. That’s less than 20 percent of the whole crypto market and less than one-quarter of one percent of the worldwide capital markets.

Let me make two points.

First, those parties offering or selling securities to the public need to register and give proper disclosure to the public. Second, the intermediaries—broker-dealers, exchanges, clearinghouses—need to be registered and properly regulated as to conflicts, disclosures, and business conduct.”

Gensler then went on to say it has been his honour to serve, and he gave thanks to the SEC staff and his family. It sure sounds like a goodbye? Watch this space.

The esteemed and (likely) outgoing Mr Gary Gensler, SEC Chairman (but not for much longer), source: Wikipedia

 


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