SEC Chairman Gary Gensler reiterated his support for transparency and compliance in the crypto sphere, setting compliance standards for crypto firms.
Gensler's Approach to Regulation
Gary Gensler proposed mandatory registration of crypto firms and providing informational reports to protect investors. He classified about 10,000 tokens as securities, indicating they should be subject to securities laws. Under his leadership, SEC approved investment products like Bitcoin ETFs and futures, yet Gensler points out many crypto firms still operate in violation of 'common sense rules' of compliance. Many crypto assets remain speculative and have yet to prove sustainable uses.
Crypto Advocates Support from Trump
Donald Trump's election victory has increased speculation about changes in SEC leadership and its approach to crypto regulation. It is believed that the SEC has already taken a somewhat softer stance towards the crypto industry. Even though Gensler's term ends in June 2026, Trump has vowed to remove him once in office. However, experts warn that Trump may find it difficult to dismiss Gensler without cause, as debates continue about SEC's future direction. With Trump's win, crypto advocates have actively mobilized to support his promise to reduce regulatory oversight. Among them are calls to protect the Bitcoin market from foreign influence and review crypto regulation and enforcement. How Trump will fulfill these promises without Senate approval for his appointees or through a recess appointment remains unclear.
Chris Giancarlo's Commentary
Former CFTC Chair Chris Giancarlo ruled out recent speculation that he might take over Gensler's role at the SEC or any position at the U.S. Treasury. Other candidates remain uncertain as the industry waits for Trump's selection. Giancarlo stated: 'I've already cleaned up earlier Gary Gensler mess at CFTC and don’t want to do it again. Rumors I'm interested in some crypto role at USTreasury are also wrong.'
The future of cryptocurrency regulation remains uncertain. Gary Gensler continues to insist on compliance standards, while Donald Trump's victory brings hopes among crypto advocates for regulatory relief.
