Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), gave a speech on November 14 where he called on crypto exchanges to register and urged those selling securities to disclose their positions appropriately.
Additionally, Gensler also clarified the SEC's stance on cryptocurrency regulation, clearly distinguishing between Bitcoin and altcoins, asserting that the agency does not consider Bitcoin to be a security.
Gensler’s language also reflected Donald Trump’s potential resignation after the election, along with the president-elect’s public criticism of his tenure. Gensler ended his speech with a message that could be interpreted as a farewell:
“The SEC and its staff are an outstanding agency… It has been an honor to work with them, serving the public interest… I am proud to stand with my colleagues at the SEC, who work day in and day out to protect American families from financial harm.”
Gary Gensler – SEC Chairman
In one of his last major statements as SEC Chairman, Gensler reaffirmed his stance on classifying Bitcoin as not a security, in contrast to most other digital assets.
“Not all assets are securities. Former Chairman Clayton and I have both maintained that Bitcoin is not a security, and the Commission has never considered Bitcoin to be a security. Instead, we focus on the approximately 10,000 other digital assets, many of which have been determined by courts to be securities.”
Gensler’s stance represents a marked departure from the SEC’s enforcement actions on other digital assets, which have accounted for about 5-7% of the agency’s focus since 2018.
Gensler’s speech highlighted why the SEC is focusing on specific altcoins. He explained that compliance with securities regulations helps create trust in the market and protect investors.
“History has shown that strict securities regulation builds confidence in the markets and fosters innovation.”
However, he also admitted that many digital assets (beyond Bitcoin) still lack sustainable use cases, with the main concerns being speculative investment and illegal activities.
One notable point in the speech was that Gensler highlighted the SEC’s approval of a Bitcoin futures ETF, a Bitcoin and Ethereum spot ETF. He said these decisions mark a shift from previous SEC Chairs who have restricted access to physically backed crypto ETFs.
According to Gensler, approving Bitcoin and Ethereum spot ETFs would help bring benefits such as transparent disclosure, reduced fees, and increased competition, in contrast to “non-compliant crypto asset markets.”
Donald Trump's victory in the November election has sparked a new wave of backlash against Gensler's tenure. The president-elect has publicly pledged to replace Gensler, which may explain the SEC chairman's tone.
“Effective regulation by the SEC fosters trust,” he said, tying his personal legacy to the SEC’s larger goal of fostering trust and protecting financial markets.
Bitcoin’s sharp rise (more than 30% since the election results were announced) is a clear demonstration of the market’s sensitivity to political and regulatory factors. Analysts have linked the rally to optimism about potential deregulation under the Trump administration. On November 13, Bitcoin hit a new high of $93,400, fueled by expectations of reduced regulatory oversight.
Bitcoin 1-day price chart | Source: TradingView
Amid speculation about his possible resignation, Gensler ended his speech with a personal reflection on the importance of securities regulations, likening them to “the rules of the road” in financial markets. Whether his tenure ends soon or extends into a new administration, Gensler’s approach to cryptocurrency regulation has left a significant mark on the industry.
Fox Business' Eleanor Terrett said the SEC chairman is expected to voluntarily resign after Thanksgiving (November 28) and leave the position in early January, before President Donald Trump's inauguration.
Source: X
While Trump’s pick for the next SEC chairman has yet to be formally announced, several potential candidates are being considered. Former SEC Commissioner Dan Gallagher, who now works at Robinhood, has previously expressed hesitation about taking the job, though sources say that could change.
Bob Stebbins, former SEC general counsel under Chairman Jay Clayton, appears to be on Clayton’s transition team. A source close to Stebbins said that if nominated, he would work closely with the Trump White House.
Other potential candidates include Brad Bondi, a lawyer at Paul Hastings, and Paul Atkins, a partner at Willkie Farr. Both have been prominent in their advocacy for less stringent regulatory policies toward crypto assets.
Former CFTC Chairman Christopher Giancarlo has dismissed speculation about his possible nomination for the position.