15th January 2025 – (New York) As he prepares to leave the Securities and Exchange Commission (SEC), Chair Gary Gensler remains resolute in his stance on the cryptocurrency industry, asserting that many within the sector are not adhering to established laws. In an interview with Yahoo Finance, Gensler described numerous digital assets as “highly speculative,” questioning their true use cases and value propositions.
Throughout his tenure, Gensler has been at odds with major players in the cryptocurrency market, overseeing lawsuits against prominent companies, including the U.S. exchange Coinbase. In response to Gensler’s impending departure, Coinbase’s Chief Legal Officer, Paul Grewal, alluded to their ongoing disputes, opting to remain silent on the matter out of respect for Gensler’s resignation.
With President-elect Donald Trump vowing to dismiss Gensler as part of his agenda for the crypto sector, it has been suggested that prominent crypto lawyer Paul Atkins may take over the SEC chair if confirmed. Atkins has long advocated for regulatory clarity that promotes innovation without imposing excessive oversight.
Despite criticism of the SEC’s regulatory approach, Gensler dismissed claims that these measures contributed to the Democrats’ electoral losses in 2024, attributing the results instead to broader economic issues, including inflation. He noted that the SEC had granted approval to BlackRock and ten other asset managers to launch spot bitcoin exchange-traded funds, a decision influenced by recent court rulings against the SEC.
This week, a federal appeals court mandated the SEC to provide clearer reasoning for rejecting Coinbase’s request for comprehensive regulations governing the crypto industry. Gensler reiterated that a lack of satisfaction with existing laws does not negate their existence.
As he approaches the end of his term, Gensler did not rule out further regulatory actions, stating, “We have an important duty, and we are going to fulfil that duty all the way through regardless of who the leadership is.” He expressed pride in the significant reforms achieved during his leadership, including advancements in Treasury market regulations and the reduction of settlement cycles.
On the prospect of customised rules for digital assets under the incoming Trump administration, Gensler remarked, “I see them as part of our great democracy,” suggesting he would leave such decisions to his successors. However, he expressed skepticism about the proposed creation of a U.S. Bitcoin reserve, emphasising that central banks traditionally do not back their balance sheets with digital assets.
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