Outgoing SEC Chairman Gary Gensler says regulating cryptocurrencies will be a huge undertaking for the agency. He adds that it is a difficult road with much to do and the performance of the industry complicates the picture.
During an interview with Bloomberg TV, cited by the website, the official expressed his views on this financial sector. He stressed that during his current administration, the necessary steps were taken to protect investors from the dangers of the crypto world. In his opinion, digital currency trading companies, especially exchanges, are not transparent enough.
Under the Gensler administration, about 100 cases were opened against companies in the crypto world. Meanwhile, during the presidency of his predecessor, Jay Clayton, about 80 cases were opened against companies in this particular sector of the innovation field.
One key aspect is that during the Clayton era, the crackdown was focused on companies issuing tokens. The most striking case so far is Ripple. Meanwhile, in the Gensler era, the front line moved towards trading companies.
In any case, Gensler believes that regulating cryptocurrencies will not be an easy task. In his view, current laws are sufficient to force the sector to work without harming investors.
The crypto world wants nothing to do with Gensler
Since 2020, the SEC under Gensler has become an executioner for crypto companies. Legal actions and refusal to engage with companies in the sector have worsened the environment for innovation. Tens of millions of dollars have been lost in court amid an all-out war against the sector.
Crypto experts claim that the application of the law through punishment was not a whimsical strategy by Gensler. On the contrary, it would be part of a deeper plan dubbed Operation ChokePoint 2.0 . Some experts, such as attorney John Deaton, are calling for a federal investigation to get to the bottom of this aggression.
Gensler's aggressiveness against the crypto sector became the main reason for his departure from the SEC. The official recently announced his resignation, which will take effect on January 20, the same day as Trump's presidential inauguration. His colleague Rostin Behnam, president of the commodities futures trading regulatory agency (CFTC), will also resign on the same day.
Despite Gensler's clear defeat in the war against cryptocurrencies, his view on the sector remains unchanged. During the same interview with Bloomberg, he stressed that the crypto world is driven by emotions rather than fundamentals. The resignation of this official became a huge cause for celebration for crypto companies.
The door is now open for new regulations in the sector and is expected to be radically different from current rules. Gensler's post will be filled by Paul Atkins.