Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC), gave a speech on Thursday fervently defending his strict regulatory policies against the crypto industry. President-elect Donald Trump has vowed to fire Gensler, who appeared to accept his departure.
Gensler remains defiantly critical of the crypto industry, calling it a field of “significant harm to investors.”
Did Gensler give a farewell speech?
In a recent public appearance, SEC Chairman Gary Gensler delivered what appeared to be a “farewell address.” Gensler began with the topic of “effective administration” and the history of securities laws in the U.S. He then went on to defend his regulatory policies, which have become a critical pain point for the U.S. crypto industry over the years.
This is an area where there has been significant harm to investors over the years. Beyond speculative investments and potential use for illicit activities, the vast majority of crypto assets have yet to prove sustainable use cases, Gensler said.
The context for this speech is very clear, as the new president-elect, Donald Trump, has promised to fire Gensler as SEC chairman. Trump’s transition team is already considering three pro-crypto candidates to replace Gensler in January.
Additionally, Trump has made a series of promises to revolutionize crypto regulation in the US. These will target both federal regulators and the legislature. Even if Trump can’t fire Gensler outright, his vision for crypto enforcement is complete.
A controversial approach to crypto policy
Since the SEC approved Bitcoin ETFs, Gensler’s hostility has faced increased resistance from other government officials. The country’s attitude towards positive crypto regulations has changed, with bipartisan support growing in the electorate. However, Gensler has maintained his aggressive stance.
Gensler said crypto-related actions have made up 5-7% of all SEC enforcement efforts since 2021. However, despite targeting the industry in this way, he added that the Commission has focused on “about 10,000 digital assets” other than Bitcoin, Ethereum or stablecoins. “That’s less than 20% of the current crypto market and less than a quarter of a percent of global capital markets,” he said.
Not every asset is a security. Former Chairman Clayton and I said that bitcoin is not a security, and the Commission never treated bitcoin as a security, he reinforced.
From his closing words, it seems evident that Gensler is preparing to resign or otherwise leave the SEC.
“What we’ve learned since the 1930s is that compliance matters. It protects investors. It builds confidence in our capital markets. It helps issuers tap into our markets. History has shown for 90 years that robust securities regulation builds confidence in markets and fosters innovation,” he said at the end of his speech.
However, if Gensler wants to continue working in the industry during Trump's presidency, he has already received a job offer. Justin Sun has offered him a position at Tron.
I am proud to have served alongside my colleagues at the SEC who, day in and day out, work to protect American families on the financial front lines,” Gensler concluded.
The article Gensler makes anti-crypto speech in his “farewell” from the SEC was first seen on BeInCrypto Brasil.
