- Gary Gensler, the current SEC Chair, remains steadfast in his stance against crypto assets and believes most cryptocurrencies, excluding Bitcoin, are securities that should be regulated.
- Gensler is likely to be ousted as SEC Chair after President-elect Donald Trump takes office, as Trump has promised to fire Gensler on his first day due to his aggressive actions against the crypto industry.
- The price of XRP surged 18% on hopes that the SEC’s legal battle against Ripple could be quashed under the new administration.
United States Securities and Exchange Commission Chair Gary Gensler has remained unwavering in his attitude against crypto assets, even as he faces being replaced under the incoming administration.
Gensler Defiant Despite Impending Removal
Gensler, who may be just weeks away from being ousted as head of the SEC by President-elect Donald Trump, has stayed defiant and committed to his stance on crypto regulation and enforcement.
In a recent speech in New York, Gensler reiterated that not every crypto asset is a security. He acknowledged that he and former SEC Chair Jay Clayton have both said Bitcoin is not a security, and the Commission has not treated it as such.
Most Cryptos Still Seen as Securities
However, Gensler still believes that most other crypto assets are securities, despite no legal or congressional classification designating them as such yet.
Gensler reiterated the same two points he has used to justify his barrage of lawsuits over the past few years:
- Those offering or selling securities to the public need to register and provide proper disclosure.
- Intermediaries like broker-dealers, exchanges, and clearinghouses need to be registered and regulated for conflicts, disclosures, and business conduct.
Industry executives have repeatedly pointed out there is no means to register because their firms are not securities brokers.
Gensler continued stating that crypto is a field where there has been significant investor harm over the years. He cited the same arguments about illicit activities and declared most crypto assets lack sustainable use cases.
States File Lawsuit Against SEC Overreach
On November 14, 18 U.S. states filed a lawsuit accusing the SEC and Gensler of gross government overreach against the crypto industry.
Gensler Hints He May Step Down
Gensler signed off hinting he may be poised to step down, stating he was proud to serve with his SEC colleagues who work daily to protect American families on the “highways of finance.”
The SEC chair’s term officially ends in June 2026. However, the crypto industry and investors remain hopeful Trump will follow through on his promise to fire Gensler on day one if elected.
XRP Skyrockets on Hopes of End to SEC Battle
Ripple’s cross-border token XRP reacted strongly, skyrocketing 18% to top out at $0.83 during the Friday morning Asian trading session, as investors saw renewed hope the four-year-long legal battle with the SEC could be quashed soon.
Conclusion
Despite facing removal from his position, Gary Gensler has remained unwavering in his strict stance on crypto regulation and enforcement. The crypto industry hopes his ouster could lead to a friendlier SEC environment. However, expectations should be kept in check until actual policy changes emerge from the new administration.
