SEC Chair Gary Gensler Hints at Resignation, Calls for Continued Regulatory Focus on Crypto

Last updated on November 16th, 2024 at 02:23 pm

Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), hinted at a potential departure from the agency in a speech at the Annual Institute on Securities Regulation Event on November 14.

Reflecting on his tenure at the Commission, Gensler defended his enforcement record in the crypto sector and emphasized continuity in the regulator’s approach. He noted that when he assumed office in 2021, the SEC, under former Chair Jay Clayton, had already initiated around 80 enforcement actions in the crypto space, including the landmark Ripple case.

Gensler pointed out that crypto-related cases have consistently accounted for just 5%-7% of SEC enforcement activities since 2018. He reiterated that both he and Clayton agreed that Bitcoin is not a security, while the focus has remained on other digital assets courts have deemed securities.

Gensler highlighted that prior to his leadership, many crypto ETF applications were disapproved or withdrawn. However, under his tenure, the SEC approved the first Bitcoin futures ETF in 2021.

At various points in the speech, Gensler praised the SEC staff, stating he was “honoured” to work with them. Notably, he concluded the speech by saying,

“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’s remarks coincide with increasing speculation about his resignation following Donald Trump’s victory in the recent U.S. presidential election, primarily because of Trump’s previous promise to remove him as SEC Chair upon assuming office.

Markus Thielen, founder of 10X Research, predicted that Gensler may step down in July. Thielen anticipates he could resign within the first two months of 2025, following the end of President Biden’s term. At the time, Thielen based his prediction on Biden’s decision not to seek re-election.

Traditionally, SEC Chairs step down during a change in administration, particularly when a new President represents a different political party, allowing the new leader to appoint a Chair aligned with their agenda.

Meanwhile, Paul Grewal, Chief Legal Officer at Coinbase, has urged the SEC to adopt a more constructive stance toward crypto regulation. Grewal emphasized the need for a regulatory framework that prioritizes innovation over litigation, highlighting the growing demand for collaboration as the crypto industry matures.

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.