Major web3 players largely celebrated Securities and Exchange Commission Chair Gary Gensler's forthcoming departure, noting how bitcoin and the broader crypto industry might flourish under new SEC leadership.
Gensler has long criticized cryptocurrency. He has previously said that much of the industry is "non-compliant" with securities law and that crypto has hurt millions of investors. However, key crypto players, such as billionaire Mark Cuban, slammed the SEC's attempts to reign in the industry under Gensler, calling its enforcement "regulation by litigation" that hinders firms.
"For the crypto industry, it's clear that the 'regulation by enforcement' regime that cost American companies over $400 million in litigation costs is over and an new era of regulatory normalization has begun," said Chris Perkins, president and managing partner at the crypto investment firm CoinFund, in a statement to The Block. "This will have a profound impact on the growth and success of the industry as institutions re-enter the space and entrepreneurs and developers are free to built the new internet without fear of reprisal or personal liability. A dark cloud has been lifted; it's a very exciting time."
Data from the Blockchain Association shows that the SEC brought 104 enforcement actions against crypto firms through 2023, with defensive litigation fees totaling $429 million.
Others noted how Gensler's anti-crypto position may have hurt Democrats amid this year's election season. Sam Lyman, director of public policy at the bitcoin mining firm Riot Platforms, said on X, "Gensler’s overreach arguably cost Harris the election, ushering in the most pro-Bitcoin administration the country has ever seen."
Others, such as Coinbase's Chief Legal Officer Paul Grewal, chose to remain coy about Gensler's departure.
"My mom always told me if I didn't have anything nice to say, don't say anything at all," Grewal said on X. "So I'm just gonna sit this one out."
Gensler announced Thursday that he plans to leave as SEC Chair on Jan. 20, 2025, the day of Trump's inauguration as the 47th president of the United States.
"The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike," Gensler said in a Nov. 21 statement. "I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor."
Trump vowed to fire Gensler as SEC Chair if he became president, among other promises to strengthen America's cryptocurrency industry, such as creating a bitcoin reserve and forging the first-ever crypto-specific role in the White House, The Block previously reported.
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