- Gary Gensler, nearing the end of his SEC tenure, downplayed crypto’s role in influencing the 2024 U.S. election.
- Under Gensler, the SEC pursued major enforcement actions against Coinbase, Ripple, and Binance, sparking criticism over unclear regulations.
- Trump plans to nominate Paul Atkins as the next SEC chair, with the Senate yet to schedule a confirmation hearing.
As his term winds down, SEC Chair Gary Gensler, set to leave office in six days, addressed the role of cryptocurrency in the 2024 U.S. presidential election. Speaking on CNBC’s Squawk Box, Gensler dismissed the idea that crypto interest groups or their funding had a significant impact on Donald Trump’s electoral victory.
Gensler on Crypto’s Influence in Politics
In the January 14 interview, Gensler downplayed the notion that money from digital asset interest groups swayed the election results. While acknowledging funds raised by the crypto field, he emphasized that the election wasn’t about cryptocurrencies. Gensler reiterated concerns about the crypto industry’s compliance, saying:
“This is a highly speculative field that has not been compliant with anti-money laundering laws, sanctions laws, or securities laws.”
SEC Actions Under Gensler’s Leadership
During Gensler’s tenure, the SEC ramped up enforcement against major crypto firms, including Coinbase, Ripple Labs, and Binance. Critics in the crypto space have repeatedly accused the regulator of failing to provide clear guidelines for digital asset companies to operate within U.S. law.
Ripple CEO Brad Garlinghouse highlighted these concerns in a 60 Minutes interview, suggesting the political action committee Fairshake—formed to support pro-crypto candidates—might not have existed without Gensler’s leadership at the SEC. Despite its influence, Fairshake reportedly didn’t spend on Trump’s campaign directly.
Post-Gensler Era: What’s Next for the SEC?
As Gensler exits, Trump has announced plans to nominate former SEC commissioner Paul Atkins as the next chair. However, the U.S. Senate has yet to schedule a hearing for Atkins’ confirmation.
Meanwhile, the SEC remains embroiled in legal battles with crypto companies:
- Coinbase continues to challenge SEC policies and has filed lawsuits seeking more transparency and clearer regulations.
- In Ripple’s case, the firm was found liable for $125 million in August, though appeals are ongoing from both sides.
- Other companies, like Robinhood and Mango Markets, have opted for settlements over allegations of offering unregistered securities.
Crypto’s Future Amid Regulatory Uncertainty
As Gensler’s term comes to a close, the crypto industry remains at a crossroads, grappling with heightened enforcement and a lack of clear regulatory frameworks. Whether Gensler’s successor will ease tensions or continue the hardline stance remains to be seen, but the coming months will likely shape the trajectory of the U.S. crypto market.
