Gary Gensler, chairman of the SEC, reaffirms his strict approach to crypto, while the threat of removal by the president-elect Trump looms. The regulatory future of digital assets thus remains uncertain and debated.
Let’s see all the details in this article.
The firm stance of the SEC chairman on crypto: an uncertain future on the eve of the Trump administration
The president of the Securities and Exchange Commission (SEC) of the United States, Gary Gensler, reiterated his uncompromising stance on the regulation of cryptocurrencies.
This happens at a time when his future at the helm of the commission is more uncertain than ever.
With the president-elect Donald Trump ready to take office, Gensler could be a few weeks away from removal, an event that would drastically change the regulatory landscape of digital assets.
Today, during his speech at the 56th Annual Institute on Securities Regulation of the Practice Law Institute, Gensler emphasized some details.
In particular, he stated that his primary goal for cryptocurrencies has been to ensure that market participants “register and provide adequate disclosure to the public”.
He specified that about 10,000 tokens could be considered securities, thus requiring compliance with existing regulations.
Gensler also mentioned the successes of the SEC under his leadership, including the approval of exchange-traded fund (ETF) linked to Bitcoin, both spot and future. However, he expressed concern about the behavior of some companies in the sector.
“This is an area where, over the years, investors have suffered significant damage.”
Gensler then added that, in addition to speculative investments and the potential illicit use of cryptocurrencies, the majority of digital assets have yet to demonstrate sustainable use cases.
“Everything we have done has been aimed at ensuring compliance with the laws to protect investors,” he stated, highlighting the importance of regulations that safeguard consumers and ensure transparency.
The threat of removal and Trump’s vision
The current term of Gary Gensler at the SEC should end in June 2026, but Donald Trump has promised to remove him from his position on the first day of his presidency, if possible.
This statement has alarmed the cryptocurrency sector and regulators, suggesting that a radical change in regulatory management could be imminent.
However, the concrete possibility of dismissing Gensler is not so simple. In fact, any replacement would require the approval of the Senate, a process that could be long and complicated.
Although Trump has expressed aggressive intentions towards cryptocurrency regulation, it is still uncertain whether he has the authority to remove Gensler without justified cause.
Furthermore, despite the threat, Gensler has not indicated that he will leave the SEC voluntarily.
If Trump does not manage to remove him immediately, he might attempt to use recess appointments to bypass Senate approval, a move that has already sparked controversy in the past.
Gensler has consistently emphasized the risks associated with investments in cryptocurrencies, highlighting cases of illicit use and the lack of tangible value for the majority of blockchain projects blockchain.
His observations have found some resonance among regulators who share the concern about market volatility and fraud.
However, the cryptocurrency community has often criticized Gensler, accusing him of being overly strict and hindering innovation.
Many supporters of cryptocurrencies, including traders and institutional investors, hope that a new regulatory approach can foster a more flexible and growth-oriented environment.
Not by chance, the desire for greater freedom in the sector is reflected in Trump’s promises.
Who has assured the intention to adopt favorable measures for cryptocurrencies, including the creation of an infrastructure that allows for the domestic production of Bitcoin and the protection of investors’ rights.
The implications for the cryptocurrency market
The possibility of a different management of the SEC raises questions about the implications for the future of digital assets.
If Trump were to succeed in his attempt to remove Gensler, the sector could see a more permissive approach, with fewer controls and greater freedom for cryptocurrency companies.
This could lead to an increase in blockchain-based projects, but also to greater exposure to risks for investors.
Some experts suggest that a relaxation of regulations could initially benefit the markets, with a possible increase in investments.
However, the concern remains that less stringent oversight could also increase the cases of fraud and market manipulation.
On the other hand, Gensler and his supporters claim that regulations are essential for the long-term stability of the sector and to protect investors from misconduct.
Source: https://en.cryptonomist.ch/2024/11/14/the-president-of-the-sec-defends-the-regulations-on-crypto-while-trump-promises-to-remove-him-on-the-first-day-of-his-term/