Gary Gensler, current Chair of the SEC, gave a speech today fervently defending his strict regulatory policies against the crypto industry. President-elect Donald Trump vowed to fire Gensler, who appeared to accept his ousting.
Gensler remained defiantly critical of the crypto industry, calling it a field of “significant investor harm.”
Gensler’s Defiant Speech
In a recent public appearance, controversial SEC Chair Gary Gensler delivered what seemed like a “farewell speech.” Gensler began with the topic of “effective administration” and the history of securities laws in the US.
He then proceeded to defend his stubborn regulatory policies, which had become a critical pain point for the US crypto industry over the years.
“This is a field in which over the years there has been significant investor harm. Further, aside from speculative investing and possible use for illicit activities, the vast majority of crypto assets have yet to prove out sustainable use cases,” said Gensler.
The context for this speech is very clear, as the new president-elect, Donald Trump, vowed to remove Gensler as SEC Chair. As BeInCrypto recently reported, Trump’s transition team is already considering three pro-crypto candidates to replace Gensler in January.
Furthermore, Trump made a series of pledges to revolutionize crypto regulation in the US. These will target both federal regulators and the legislature. Even if Trump cannot fire Gensler outright, his vision for crypto enforcement is finished.
A Failed Approach To Crypto Policy
Since the SEC approved Bitcoin ETFs, Gensler’s hostility has seen increased pushback from other government officials. The country’s attitude towards positive crypto regulations has changed, with increasing bipartisan support in the electorate.
Nevertheless, Gensler maintained his hawkish stance. He said that crypto-related actions have constituted 5-7% of the SEC’s entire enforcement efforts since 2021.
However, despite targeting the industry in this outsized manner, he added that the Commission focused on “10,000 or so digital assets” besides Bitcoin, Ethereum, or stablecoins. That’s less than 20% of the actual crypto market.
Clearly, his strategy of aggressively pursuing smaller assets is unsustainable. Gensler concluded his speech by reminding readers that he eventually approved the Bitcoin ETFs and held them as a model for effective compliance.
Until the very end, Gensler maintained that he pursued his crypto policies on behalf of the public good. From his closing remarks, it seems apparent that Gensler is preparing to resign or otherwise leave the SEC.
Donald Trump has proposed a new policy for crypto regulation, and it’s completely at odds with Gensler’s approach. However, if Gensler wishes to continue working with the industry during Trump’s presidency, Justin Sun offered him a job at Tron.
“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 concluded.
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