Securities and Exchange Commission (SEC) Chair Gary Gensler, a controversial figure in the cryptocurrency world, has announced his resignation, effective January 20, coinciding with the inauguration of President-elect Donald Trump.
Gensler, who led the SEC with a focus on investor protection and market oversight, has been both praised and criticized for his aggressive stance on cryptocurrencies. While his supporters lauded efforts to tackle fraud and market manipulation, many in the crypto industry and Republican circles viewed his policies as overreach.
During his tenure, Gensler described the cryptocurrency market as “the Wild West” in a speech at the Aspen Security Forum in 2021. “This asset class is rife with fraud, scams, and abuse in certain applications,” he said. “There’s a great deal of hype and spin about how crypto assets work. In many cases, investors aren’t able to get rigorous, balanced, and complete information.”
Crypto Regulation Under Gensler
Under Gensler’s leadership, the SEC took legal action against several cryptocurrency players for fraud and market violations. Just last month, the commission charged three firms and nine individuals for allegedly manipulating various crypto markets.
Despite these measures, access to cryptocurrencies expanded during Gensler’s tenure. In January, the SEC approved exchange-traded funds (ETFs) that track the spot price of Bitcoin, allowing investors to gain exposure to the cryptocurrency without directly purchasing it.
Bitcoin’s value has soared following Trump’s election victory, jumping 40% and nearing the $100,000 mark as of Thursday. The announcement of Gensler’s resignation further boosted the cryptocurrency’s price.
A Divisive Legacy
Gensler’s regulatory approach extended beyond cryptocurrencies, with proposals aimed at increasing transparency and accountability across financial markets. Critics in the investment industry argued that many of these measures were overly burdensome, particularly regarding disclosures by advisers and companies.
During the presidential campaign, Trump vowed to remove Gensler, aligning with the sentiments of crypto advocates who opposed the SEC’s crackdown under his leadership.
As Gensler prepares to step down, speculation grows about the direction the SEC will take under Trump’s administration. The president-elect has promised to create a supportive regulatory framework for cryptocurrencies, including a Bitcoin and Crypto Presidential Advisory Council and a national Bitcoin reserve.
Gensler’s departure marks the end of a contentious chapter for the SEC, leaving behind a complex legacy of enforcement and expanded access to digital assets.
