On June 25, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), spoke with Bloomberg’s Annmarie Horden at the Bloomberg Invest Summit. During the conversation, Gensler addressed the intersection of cryptocurrency and securities laws, the political implications of crypto regulation, and his ongoing priorities at the SEC.
Crypto Securities and SEC Regulations
Gensler emphasized that there is no inconsistency between crypto securities and existing securities laws. He noted that the rules governing securities are clear and have been established to protect investors and ensure fair, orderly, and efficient markets. Despite this, he acknowledged that a significant number of entities within the crypto space are not compliant with these laws. This non-compliance is a critical issue that the SEC aims to address through its regulatory oversight.
Political Landscape and Crypto Regulation
The discussion highlighted the growing political significance of cryptocurrency, with former President Trump planning to address a major Bitcoin conference and promising to end what he calls “Joe Biden’s war on crypto.” Mark Cuban also has suggested that Gensler’s actions could potentially impact the upcoming election. In response, Gensler refrained from commenting on political matters, reiterating that his focus is solely on his role as a securities regulator.
Gensler stated that his primary responsibility is to protect investors and oversee issuers, ensuring access to fair, orderly, and efficient markets. He expressed that other individuals could engage in political discourse, but his mandate is to uphold the integrity of the capital markets.
SEC’s Ongoing Initiatives and Future Plans
Gensler shared his sense of privilege in serving as the SEC Chair and his commitment to advancing the agency’s mission. He highlighted several key initiatives the SEC has been working on, including:
Transition to T+1 Settlement Cycle: The SEC has implemented a significant transition to a one-day clearance and settlement cycle, which aims to reduce risk and enhance market efficiency.
Treasury Clearing Rules: Gensler underscored the importance of stabilizing the $7 trillion treasury market, which has experienced periodic fragility. The implementation of new treasury clearing rules is a priority to ensure the market’s robustness.
Ongoing Rule Proposals: The SEC has proposed several rules that have yet to be adopted. Gensler noted that while there is no urgency to finalize these rules before the election, the goal is to enhance the markets for the benefit of the American public.
Gensler concluded by stating that serving the American people and protecting investors is his primary objective. Whether he serves through the end of his term in 2026 or leaves earlier, he views his role as a public service and a cornerstone of democracy in action.