Gary Gensler Says Bye Bye, Bitcoin And Friends Go High
NOIDA (CoinChapter.com) — Gary Gensler, the 33rd U.S. Securities and Exchange Commission (SEC) Chair, will step down on January 20, 2025, aligning his resignation with President-elect Donald Trump’s inauguration. While it is customary for federal agency leaders to leave during a change in administration, Gensler’s decision has sparked speculation about his motives.
Trump had openly criticized Gensler’s strict regulatory approach, particularly toward cryptocurrencies, and pledged to remove him if elected. By resigning, Gensler may be seeking to preserve his legacy, avoiding a public dismissal while ensuring a smoother transition.
Gensler’s tenure began in April 2021 and was defined by aggressive enforcement actions against major crypto firms such as Ripple, Coinbase, and Binance. This approach earned him praise for investor protection and criticism for stifling innovation.
Well, at least Gensler tried very hard. Source: X
The cryptocurrency market is already reacting, and Trump is poised to appoint a more crypto-friendly successor. Bitcoin has surged nearly 60% recently, reflecting investor optimism for a potential regulatory shift.
Bitcoin And Cryptos Rejoice
Following the news, Bitcoin and other cryptocurrencies rejoiced with a bullish rally.
BTC USD pair is on the path to $100,000. Source: Tradingview
Bitcoin price used the bullish tailwinds to inch closer to the coveted $100,000 mark, reaching a new record high near $99,390 on Nov. 22. Breaking above the 0.5 FIB retracement level would allow Bitcoin price to target the 0.382 FIB resistance near $107,240.
However, a rejection here would set the token tumbling to the support level near $89,800. The token’s overbought RSI level, currently at 81.74, could spoil Bitcoin’s fun, but it seems unlikely given the market’s euphoria over Gensler’s exit.
Unsurprisingly, Ripple’s XRP is the next gainer in the crypto market. Ripple has been one of the worst-suffered victims of Gensler’s crypto hatred.
XPR USD daily price chart. Source: Tradingview
XRP price rallied higher, only halting near the $1.45 resistance level. The token could reach higher riding the Gensler exit euphoria, but the token will then face resistance near $1.7. Other tokens rallied too, with ETH price rising nearly 8% and Solana reaching a new ATH.
Gensler’s Exit Could Become Crypto’s Turning Point
Gary Gensler’s decision to step down as SEC Chair effective Jan. 20, 2025, amidst growing political and industry pressure. Announced via an SEC press release, his resignation precedes the formal end of his term, which was set for 2026.
No surprises there, Brad.
The announcement highlighted his achievements, including reforms in Treasury and equity markets, corporate governance updates, and enhanced investor protections. However, his tenure has been contentious, particularly in the cryptocurrency sector.
Gensler’s “regulation by enforcement” strategy targeted numerous blockchain firms for alleged violations, leading to lawsuits and penalties exceeding $21 billion. This heavy-handed approach drew ire from the crypto industry, which accused him of regulatory overreach and driving innovation offshore.
Kraken’s chairman had some harsh words for Gensler.
Critics suggest that the timing of his resignation may reflect an attempt to avoid the scrutiny of a hostile administration.
Market responses to Gensler’s resignation have been overwhelmingly positive. Investors are optimistic about reduced enforcement actions and clearer regulatory frameworks. Trump’s campaign rhetoric, including plans to establish a strategic Bitcoin reserve and support for blockchain innovation, has fueled bullish sentiment.
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