On Friday (November 8), Bitcoin surged again, breaking through $76,000 and reaching a historic high of $76,836. News circulated in the community about the investigation of SEC Chairman Gary Gensler by senior Republican lawmakers following Donald Trump's announcement of victory. The Republican Party has gained control of the Senate and leads the Senate elections with 210 votes, with Trump approaching a potential third consecutive win.
As of Friday in Asia, the U.S. House of Representatives elections remain undecided, but the Republicans lead the Democrats with 210 votes to 198, needing 218 to gain majority control. However, Trump has won the presidential election, and the Republicans have announced control of the majority seats in the Senate.
Keith Gill, the legendary American retail investor known as 'Roaring Kitty,' wrote in a Twitter post: 'Breaking news, Gensler is under investigation.'
Observing community movements, several accounts labeled as opinion leaders (Twitter blue checkmarks) have coincidentally posted the same information that Gensler is being investigated by senior Republican lawmakers.
Upon careful examination, it can be found that this news actually originated in September, as Fox News reporter Eleanor Terrett stated at the time that Gensler was under investigation by senior Republican lawmakers, including Jim Jordan, Patrick McHenry, and James Comer, for political bias during the hiring process.
This news resurfaced in the crypto market after Trump's victory.
Trump promised before the election that he would fire Gensler once he took office in the White House.
Eleanor tweeted that she had contacted the SEC to ask whether Gensler plans to end his term 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 fire Gensler from the SEC, it is customary for past chairs of the regulatory agency to follow Washington tradition and choose to resign on or before the inauguration day of the new president.
Bloomberg reported 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 of dollars in presidential and congressional campaigns, but its most notable electoral victory may be Gensler's departure. This former Goldman Sachs banker led the harshest regulatory crackdown on the digital asset industry, initiating dozens of lawsuits against cryptocurrency companies and various traders, including financial giant Coinbase Global Inc. and proprietary trading firm DRW Holdings LLC.
President Trump's decisive victory almost ensures the rollback of cryptocurrency-related enforcement after he takes office. In July, Trump promised to fire Gensler on the first day of his second administration while attending the Bitcoin 2024 conference in Nashville.
The SEC often boasts about its successful rulings in court, which align with its view that decades-old securities laws apply to the emerging digital asset category. It has also imposed significant fines on some major companies in the industry. In April of this year, the agency won a massive $4.5 billion fine and recovery from stablecoin issuer Terraform Labs and founder Do Kwon. The agency has not released its annual enforcement report for fiscal year 2024, but according to a report by consulting firm Cornerstone Research, it initiated 46 such cases in the previous year, an increase of over 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 uncover more such cases. Many cryptocurrency cases are only registered, and in cases where registration is not possible, they are fault cases.'
The next SEC chairman is expected to promote new regulations to amend existing securities laws or allow digital asset companies to comply with the rules that Gensler has long warned they are violating. This will also help in controlling enforcement.
With the Senate currently firmly in Republican hands, the prospects for bipartisan cryptocurrency legislation supporting this goal are more promising. Jack Inglis, CEO of the Alternative Investment Management Association, stated: 'We expect the Trump administration and the new Congress to take a more constructive approach to cryptocurrency regulation.' This association is a trade organization based in London representing hedge funds and private equity firms.
This means that the policy 'recognizes the need to integrate cryptocurrency into a broader financial services framework while considering the technological differences with traditional finance, thus adopting a more tailored approach in many areas,' he said.
Summary of the SEC's investigation into major cryptocurrency companies:
Bitcoin Technical Analysis
Economies.com states that the Bitcoin price shows negative trading to test the breakout resistance of the bullish channel appearing on the chart, and the price needs to consolidate above these areas, which is essential for continuing the expected bullish trend in the future, with a target of $78,000 as the next major station.
On the other hand, we should note that falling below $75,000 and then deepening to $73,820 will halt the bullish trend and subject the price to corrective bearish pressure.
'The current expected trading range is between the support level of $73,800 and the resistance level of $78,000.'
