Lummis Criticizes Gensler’s Crypto Approach Amid Trump Comments

• Senator Lummis predicts SEC Chair Gensler will step down if Trump wins the 2024 election.
• Trump vows to fire Gensler on “day one” during a speech at the Bitcoin 2024 Conference.
• Lummis criticizes Gensler’s enforcement-focused approach and calls for clearer crypto regulations.

Senator Cynthia Lummis stated that current Securities and Exchange Commission (SEC) Chair Gary Gensler might step down if Donald Trump wins the 2024 presidential election.

In an interview on CNBC’s Squawk Box on September 27, Lummis addressed the hosts’ remarks about Gensler’s dedication. She expressed doubt about whether Gensler would stay in his role if Trump were elected president, noting that she didn’t expect such a scenario under a Trump administration.

Lummis’s comments followed Trump’s speech at the Bitcoin 2024 Conference in Nashville, where he vowed to remove Gensler on his first day back in office, if re-elected. The crypto community welcomed Trump’s promise, which came after growing frustration with how Gensler has managed the digital asset space.

Lummis’s Call for Clear Crypto Regulations

Senator Lummis criticized Gensler for relying on enforcement actions instead of providing specific industry regulations. This approach, she argued, left many crypto firms without the guidance they needed. In her CNBC interview, Lummis emphasized the need for well-defined rules to support the U.S. cryptocurrency market.

Lummis also pointed out the importance of clear definitions in the crypto space, particularly when it comes to which assets fall under the jurisdiction of the Commodities Futures Trading Commission (CFTC).

In her view, Bitcoin and Ethereum are commodities, based on Gensler’s prior statements about Bitcoin. However, Lummis highlighted that Ethereum’s regulatory status remains unclear. She suggested that other digital assets could also be classified as commodities, underscoring the need for regulatory clarity.

Gensler’s Stance on Crypto Regulation

Gensler has stuck to his stance despite criticism. On September 26, he reiterated the SEC’s position that Bitcoin is a commodity, during another appearance on Squawk Box. However, he has not provided a clear answer on whether Ethereum should be classified as a commodity, leaving its regulatory status uncertain.

As SEC Chair, Gensler has prioritized investor protection in the crypto market. Regulators argue that many crypto companies have taken advantage of the public’s growing interest in digital assets without meeting disclosure requirements.