Gary Gensler could step down as SEC chair after U.S. elections
Gary Gensler could step down as SEC chair after U.S. elections
With most SEC executives resigning after the arrival of a new president, Gary Gensler's continued stay in the cryptocurrency industry has come into question.
Since taking office in 2021, Gensler has drawn sharp criticism from industry leaders and market participants for his aggressive regulatory stance toward digital assets. While supporters see him as a necessary enforcer in a rapidly evolving market, detractors argue that his approach has stifled innovation and created uncertainty in a burgeoning financial sector, Сoindesk reported.
Gensler’s reign has been marked by high-profile enforcement actions against major crypto firms. These include lawsuits against Ripple Labs and Coinbase, with the SEC accusing both companies of offering unregistered securities. Although the Ripple case partially favored the crypto company by clarifying that XRP is not a security in secondary market transactions, the SEC's aggressive strategy sent a chilling message to the industry. Critics argue that Gensler’s regulatory actions have lacked clarity, creating confusion over which cryptocurrencies fall under securities laws.
Another contentious point of Gensler’s tenure has been the SEC's long term hesitation to approve a Bitcoin spot exchange-traded fund (ETF). Despite growing demand from investors and multiple applications from major financial institutions, the agency has delayed issuing permits for too long, citing concerns over market manipulation and investor protection. This reluctance has fueled frustration within the industry, with some stakeholders accusing the SEC of deliberately dragging its feet on innovation while other jurisdictions, like Canada and Europe, move ahead with similar products.
As rumors swirl about Gensler’s potential departure, the crypto community is bracing for what could be a pivotal transition. His exit is being closely monitored by both market participants and regulators. Many hope that a change in leadership could lead to a more balanced approach, offering clearer guidelines while maintaining consumer protections. Others, however, fear that the next SEC chairman might continue Gensler’s hardline stance, leaving the industry grappling with the same regulatory uncertainties.
Earlier we reported that the US Securities and Exchange Commission (SEC) missed the deadline to appeal the court's decision in the Ripple case, which helped the coin's growth. However, on October 18, the SEC filed an appeal challenging the court's ruling on XRP's status as a security, which immediately affected the value of XRP.
