As Gary Gensler’s term as the chair of the U.S. Securities and Exchange Commission (SEC) faces potential upheaval due to Donald Trump’s election victory, he remains steadfast in his push for cryptocurrency exchanges to register with the SEC. Gensler emphasizes the importance of proper disclosures from those dealing in securities, underscoring the need for greater transparency in the crypto market.
Gensler Sticks to His Words Despite Trump’s Threat
In light of President-elect Donald Trump’s threat to dismiss him, Gary Gensler continues to advocate for stringent cryptocurrency regulation. Speaking at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation, Gensler reiterated his commitment to ensuring that companies dealing in cryptocurrencies adhere to SEC regulations. He stressed the necessity for these companies to register and provide adequate public disclosures for approximately 10,000 tokens classified as securities.
During his tenure, Gensler has overseen the SEC’s approval of Bitcoin exchange-traded funds and Bitcoin futures investment options. Despite these successes, he expressed concerns about some cryptocurrency firms neglecting basic regulatory requirements. “Putting this in context, aside from bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion,” Gensler noted, emphasizing the relatively small share of the global capital markets represented by these assets.
Though Gensler’s term officially runs through June 2026, Trump has indicated his intention to remove Gensler from his position if elected, potentially signaling a significant shift in the SEC’s approach to cryptocurrency regulation. However, legal experts assert that the president may face challenges in dismissing Gensler without substantial cause, and Gensler himself has not expressed any plans to resign.
What’s the Future of Crypto in the USA?
Speculation abounds regarding whether Gensler will choose to resign, following the precedent set by previous SEC chairs. Alternatively, he might opt to continue serving as a commissioner within the SEC. With Trump’s reelection on November 5, the cryptocurrency community is keen to see him fulfill his campaign pledges, which include localizing Bitcoin operations in the U.S., pardoning Ross Ulbricht, the Silk Road founder, and halting the development of a government-backed digital currency.
The legality of Trump’s ability to remove Gensler from the SEC remains uncertain. Even if possible, appointing a new chair would typically necessitate Senate approval. Trump has hinted at bypassing this process through recess appointments to fill key administrative roles, although no official replacement for Gensler has been identified. Dan Gallagher, a former SEC commissioner and current Robinhood Markets executive, has been mentioned by Reuters as a possible successor.
Gensler has consistently highlighted the risks associated with the crypto industry, noting its potential for investor harm and its predominant focus on speculative investing and illicit activity. Despite these challenges, the majority of crypto assets have yet to establish sustainable use cases, according to Gensler.
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