On Friday (November 8), Bitcoin surged again, breaking through $76,000, reaching an all-time high of $76,836. The news of Gensler being investigated by senior Republican lawmakers after Trump's election victory spread rapidly across the community. The Republicans have gained control of the Senate, leading the Senate election with 210 votes, and Trump is approaching a third consecutive victory.
As of Friday in the Asian market, the U.S. House of Representatives elections remain undecided, but the Republicans lead the Democrats with 210 votes to 198, needing 218 to gain a majority. However, Trump has secured victory in the presidential election, and the Republicans have announced control of the Senate majority.
American retail legend Keith Gill, known as 'Roaring Kitty,' wrote in a Twitter post: 'Breaking news, Gensler is under investigation.'
Observing community trends, several accounts labeled as opinion leaders (Twitter blue checkmarks) have coincidentally posted the same message, indicating that Gensler is under investigation by senior Republican lawmakers.
A close examination reveals that this news actually originated in September, when Fox News reporter Eleanor Terrett stated that Gensler was under investigation by senior Republican lawmakers, including Jim Jordan, Patrick McHenry, and James Comer, for alleged political bias during the hiring process.
This news resurfaced in the cryptocurrency market after Trump's election victory.
Trump promised before the election that he would fire Gensler once he took office.
Eleanor tweeted that she had contacted the SEC to inquire whether Gensler plans to end his position by the end of this year or resign before Trump's inauguration in January 2025, but the SEC spokesperson did not respond.
It is worth noting that although the President of the United States does not have the authority to directly dismiss Gensler from the SEC, it is customary for past chairs of the regulatory agency to follow Washington tradition by choosing to resign on or before the inauguration day of the new president.
Bloomberg reported on Thursday that after Trump takes office, cryptocurrency enforcement by the SEC will be significantly reduced.
The article states that the cryptocurrency industry has invested millions in presidential and congressional campaigns, but its most notable electoral victory may be Gensler's departure. The former Goldman Sachs banker led the most severe regulatory crackdown on the digital asset industry, filing dozens of lawsuits against cryptocurrency companies and traders of all sizes, including financial giant Coinbase Global Inc. and proprietary trading firm DRW Holdings LLC.
President Trump's decisive victory almost ensures the withdrawal of cryptocurrency-related enforcement after he takes office. In July, Trump promised to fire Gensler on the first day of his second administration during his appearance at the Bitcoin 2024 conference in Nashville.
The SEC often boasts of its successful judgments in court, which align with its view that decades-old securities laws apply to the emerging category of digital assets. It has also imposed hefty fines on some major companies in the industry. In April of this year, the agency won a massive $4.5 billion fine and disgorgement from stablecoin issuer Terraform Labs and founder Do Kwan. The agency has yet to release its annual enforcement report for fiscal year 2024, but according to a report by consulting firm Cornerstone Research, it filed 46 such cases in the previous year, an increase of more than 50% from the year before.
JW Verret, a professor at George Mason University's Antonin Scalia Law School in Arlington, Virginia, stated: 'Some cryptocurrency cases are legitimate fraud cases, and I hope these cases continue; I hope we can discover more such cases. Many cryptocurrency cases are just registered, and in cases where registration is not possible, they are fault cases.'
The next chair of the SEC is expected to push for new regulations to amend existing securities laws or enable digital asset companies to comply with the rules that Gensler has long warned they violate. This will also help control enforcement.
With the Senate currently firmly in Republican hands, the prospects for bipartisan cryptocurrency legislation supporting this goal are brighter. Alternative Investment Management Association CEO Jack Inglis stated: 'We expect the Trump administration and the new Congress to have a more constructive attitude towards cryptocurrency regulation.' The association is a trade organization based in London representing hedge funds and private equity firms.
This means that the policy 'recognizes the need to embed cryptocurrencies within a broader financial services framework, while considering the technological differences with traditional finance, thus adopting a more customized approach in many areas,' he said.
Summary of the SEC's investigation into major cryptocurrency companies:
Bitcoin Technical Analysis
Economies.com states that Bitcoin prices show negative trading as they test the breakout resistance of the bullish channel appearing on the chart, and prices need to consolidate above these areas, which is a primary condition for continuing the expected bullish trend in the future, with a target of $78,000 as the next main station.
On the other hand, it should be noted that falling below $75,000 and then deeply below $73,820 will halt the bullish trend and put prices under bearish correction pressure.
The current expected trading range is between the support level of $73,800 and the resistance level of $78,000.
