Gary Gensler resigns as SEC Chair amid regulatory controversies
Gary Gensler resigns as SEC Chair
Gary Gensler, the embattled Chair of the U.S. Securities and Exchange Commission (SEC), has stepped down following mounting criticism over his handling of cryptocurrency regulations.
His departure comes in the wake of a landmark ruling by the U.S. Third Circuit Court, which found the SEC’s approach to regulating digital assets lacking in transparency and consistency, according to Coingape.
Court Ruling Exposes SEC's Regulatory Gaps
The court’s decision in the Coinbase lawsuit marked a significant blow to Gensler’s enforcement-centric policies. The ruling required the SEC to explain its refusal to create clear guidelines for cryptocurrency regulations.
Coinbase had filed a petition in 2022, requesting rules that specifically address the classification and regulation of digital assets, which the SEC rejected without adequate explanation. The court deemed this action “arbitrary and capricious.”
XRP lawyer John Deaton, a vocal critic of Gensler, described his resignation as leaving the SEC “in disgrace.” Deaton has also called for abolishing the agency’s accreditor investor rule, which he claims unfairly discriminates against those who lack wealth but possess financial acumen.
Path Forward for Crypto Regulation
The crypto community has welcomed the court’s decision as a step toward clarity and fairness. Coinbase’s Chief Legal Officer, Paul Grewal, hailed the victory as a win for transparency. Ripple’s legal chief, Stuart Alderoty, similarly praised the ruling, expressing optimism for reforms under incoming SEC Chair Paul Atkins.
Atkins, a proponent of streamlined regulation, faces the challenge of restoring trust in the SEC while addressing the evolving needs of the digital asset space. For many in the industry, the decision marks a pivotal moment for crypto governance in the United States.
Meanwhile, Rostin Behnam, Chair of the U.S. Commodity Futures Trading Commission (CFTC), will step down on January 20, 2025. His departure coincides with Donald Trump’s presidential inauguration on the same day.
