Gary Gensler Defends Crypto Regulation Views Amid SEC Chair Replacement Discussion
Amid growing talk of President Donald Trump replacing SEC Chairman Gary Gensler upon taking office, Gensler continues to defend his approach to cryptocurrency regulation.
Gensler: Policy not much different from predecessor
At the Practicing Law Institute’s Annual Institute on Securities Regulation event in New York on November 14, Gensler emphasized that his views on cryptocurrencies closely align with the policies of his predecessor, Jay Clayton.
Gensler stated:
“I am proud to continue to lead under Chairman Clayton. And I say this because we are really not that different.”
He also pointed out that Clayton took approximately 80 cryptocurrency-related enforcement actions during his tenure from May 2017 to December 2020. That level of vigilance has continued under Gensler’s leadership.
Difference in approach
However, many critics say Gensler's approach appears to be much more aggressive. For example, Congressman Tom Emmer said at Gensler's recent hearing:
“We have never had an SEC chairman as destructive or lawless as he is.”
Under Gensler’s leadership, the SEC has targeted major cryptocurrency companies like Coinbase and Binance, accusing them of operating unregistered exchanges. Clayton’s approach, meanwhile, has been less forceful.
Leadership change is possible
Former President Donald Trump, who is likely to return to the presidency, has said he would fire Gary Gensler. Such changes are often associated with a change in party in power.
While Gensler has not publicly announced his future plans, recent statements have been concluding, even somewhat parting.
Gensler's Final Call on Cryptocurrencies
At a regulatory conference in New York the same day, Gensler stressed the importance of establishing clear rules for cryptocurrency trading and intermediaries such as brokers and exchanges.
He reiterated his view that Bitcoin is not classified as a security, in line with Clayton's views during his previous tenure. Gensler shared:
“I am proud to continue to lead under Chairman Clayton. We are really not that different.”
Conclude
Gensler’s recent comments suggest he is still standing by his views on cryptocurrencies, despite harsh criticism from lawmakers and the industry. However, a potential leadership change under the new administration could mark a major turning point for the future of cryptocurrency regulation in the United States.