“On January 20, 2025, one of the crypto community’s least favorite officials, Gary Gensler, will step down as head of the SEC. On January 20, 2025 I will be stepping down as @SECGov Chair. A thread 🧵⬇️ — Gary Gensler (@GaryGensler) November 21, 2024 “I thank the president [Джо] Biden for entrusting me with this incredible responsibility. The SEC has fulfilled its mission and enforced the law […]”, — write: businessua.com.ua
On January 20, 2025, one of the most disliked officials in the crypto community, Gary Gensler, will leave the post of head SEC.
On January 20, 2025 I will be stepping down as @SECGov Chair.
A thread 🧵⬇️
— Gary Gensler (@GaryGensler) November 21, 2024
“I thank the president [Джо] Biden for entrusting me with this incredible responsibility. The SEC has fulfilled its mission and enforced the law without fear or favoritism,” he commented.
Gensler’s term was to last until 2026. The official is leaving his post amid a change in the US presidential administration, and the date of his official resignation coincides with the inauguration of Donald Trump, who promised to fire the head of the SEC during the election campaign.
RetrospectiveGensler — the 33rd chairman of the U.S. Securities and Exchange Commission — took the post in April 2021 as one of Joe Biden’s team nominees.
Before his appointment, he headed CFTC and participated in a number of projects related to financial reforms under the administration of Barack Obama. During this period, the official was remembered for his tough approach to regulation.
Even before his appointment as head of the SEC, Gensler spoke about cryptocurrencies, in particular, he opposed comparing them to Ponzi schemes.
In 2018, he became embroiled in one of the longest-running disputes between the crypto industry and the authorities, claiming that Ethereum and Ripple were issued in violation of US securities laws. This issue is likely to remain unresolved until the arrival of a new chapter in the SEC.
SEC Chair nominee, Gary Gensler:
“#Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection… If confirmed at the SEC, I will work to promote innovation” pic.twitter.com/AlAsUPJONY
— Bloqport (@Bloqport) March 2, 2021
“I and the other commissioners will work on promoting innovation, but we will also take care of protecting investors. If something is a security, it must be subject to the securities laws and under the jurisdiction of the SEC,” Gensler commented in his speech.
He emphasized the importance of innovation in finance and noted that legislation will have to keep up with the development of technology:
“In my current role as a professor at MIT, I research and teach at the intersection of technology and finance. I believe fintech can be a powerful force for good — but only if we continue to leverage the SEC’s core values in the interests of investors, issuers, and the public.”
Shortly after Gensler’s appointment, SEC Commissioner Hester Pierce called his leadership and “fresh perspective on old topics” productive for the crypto industry.
The official’s positive statements about cryptocurrencies and fintech were encouraging, but the characteristic feature of his approach to the crypto market was the rigidity in regulation, manifested during the CFTC and work on financial reforms.
Early in his tenure, Gensler faced growing distrust of traditional finance and government institutions amid a pandemic-hit economy and the fallout from GameStop’s stock rally.
Under Gensler, the Commission filed a series of large lawsuits against crypto companies it suspected of issuing unregistered securities. Among them are Binance, Coinbase, FTX, Kraken and Ripple.
In May 2022, the official called on Congress to cooperate in creating a legislative framework for crypto exchanges and emphasized that without it, users of cryptocurrency platforms will remain at risk.
In addition to applying existing regulations, Gensler sought to expand the SEC’s powers in the digital asset market, which soon caused outrage in the crypto community. In September 2022, he stated that the majority of existing tokens could be considered securities, and therefore the businesses dealing with them would be accountable to the SEC.
His term also coincided with the launch of large cryptocurrency ETFs, including Ethereum and Bitcoin funds. The SEC has long refused to approve the issuers’ applications, prompting a backlash from the community and additional lawsuits. Later, according to the official, “circumstances changed” and a number of funds were still approved.
Notably, until the end of Gensler’s tenure, the Howie test remains one of the Commission’s primary tools for identifying securities among the mass of digital assets.
Farewell wordsIn his three years as head of the SEC, Gensler has become one of the crypto community’s least favorite politicians, along with Senator Elizabeth Warren, known for her opposition to digital assets.
Let’s all be clear on one thing. @GaryGensler is evil. He should never again have a position of influence, power, or consequence. Any company, university, or organization that hires or works with him post-SEC is betraying the crypto industry and should be boycotted aggressively.…
— Tyler Winklevoss (@tyler) November 16, 2024
Commenting on the official’s firing, Gemini co-founder Tyler Winklevoss called him “evil” and accused him of pursuing his own interests by destroying an entire industry and tens of thousands of jobs. Before that, he called for the SEC head to be fired.
Tron founder Justin Sun offered to hire Gensler, putting differences aside, if he could be “sincere about the crypto industry.”
Finally, the end of an era—though, Gary, it’s a little too late. The damage is done, and it’s massive, scarring US markets, the global economy, and everyday people. Let’s hope the next chapter brings accountability. If you need a job, contact me! https://t.co/4bPl8QJggO
— HE Justin Sun 🍌 (@justinsuntron) November 22, 2024
“Gary Gensler is going to leave, and everyone in the crypto community is incredibly excited,” said Blockchain Association CEO Christine Smith in an interview with BBC News.
According to Smith, the official only “attacked the industry with lawsuits”, so he is “glad to get it out of the way”.
Over the past year, experts have repeatedly said that the SEC’s policies under Gensler’s leadership are negatively affecting the Democrats’ chances of winning the presidential election. Billionaire Mark Cuban, Ripple director Brad Garlinghouse and Uniswap founder Hayden Adams shared this opinion.
What’s next?In the first months of 2025, Gensler should be replaced by a new manager. With the change in power, many members of the crypto community expect positive changes for the industry.
CLO Coinbase’s Paul Grewal hopes for the Commission’s penchant for open dialogue and innovation rather than litigation.
“I love the hell out of America. We’re back,” wrote Messari’s former CEO Ryan Selkis, who previously declared “war” on the SEC, in a since-deleted post.
According to the chief lawyer of Variant Fund Jake Chervinsky, the main vector in the agency’s policy will be deregulation, which will show the intentions of the new administration regarding the crypto market.
“We suspect that cryptocurrencies will have their way, and the next SEC chairman will be much more industry-friendly than Gensler,” said Ian Katz of Capital Alpha Partners.
Billionaire Mark Cuban, Robinhood CLO Dan Gallagher, ex-CFTC Chairman Chris Giancarlo, SEC Commissioner Hester Pearce and former Commission General Counsel Robert Stebbins have already been named as possible candidates for the post of SEC head.
Earlier, 18 US states filed a lawsuit against the SEC, accusing the Commission of exceeding its powers and unfairly persecuting the crypto industry.
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