With the spotlight on the prospect of President Donald Trump replacing SEC Chair Gary Gensler, the latter remains resolute in upholding his approach to regulating cryptocurrencies.
Gensler emphasized that the agency’s strategy during his tenure closely mirrored that of Jay Clayton, his predecessor.
Addressing this subject at the Practising Law Institute’s Annual Institute on Securities Regulation in New York on November 14th, Gensler stated,
“I take pride in continuing Chair Clayton’s legacy. Our differences are rather minimal.”
These statements were made amidst ongoing discussions regarding the SEC’s influence on the future of digital asset regulation in the Trump administration.
Gensler Draws Parallels with Clayton
Gensler, in his discourse, drew parallels between his regulatory stance and that of Jay Clayton, specifically noting the initiatives undertaken in the form of enforcement actions by the SEC.
He highlighted that during Clayton’s term, spanning from May 2017 to December 2020, there were around 80 enforcement actions related to cryptocurrencies. This dedication to oversight has been sustained under Gensler’s leadership.
However, critics argue that Gensler’s approach demonstrates a notably higher level of assertiveness.
For instance, Rep. Tom Emmer, in response to Gensler’s recent testimony, remarked,
“We’ve never witnessed a more historically disruptive or unlawful SEC chair.”
Under Gensler’s helm, the SEC has initiated action against prominent crypto entities such as Coinbase and Binance, accusing them of running unregistered exchanges. This level of scrutiny was less pronounced during Clayton’s tenure.
It is worth noting that former President Trump, potentially poised for a return to power, had previously promised to dismiss SEC Chair Gary Gensler—a move that commonly accompanies a change in the governing party.
While Gensler has not explicitly outlined his future plans, his recent statements carried a contemplative, almost parting tone.
Gensler’s Final Advocacy for Cryptocurrencies
Further, while speaking at a legal conference in New York on the same day, Gensler reiterated the SEC’s commitment to establishing clear regulatory frameworks for cryptocurrency transactions and intermediaries, including brokers and exchanges, as per a report by Bloomberg.
During this address, Gensler reaffirmed that Bitcoin does not fall under the category of securities, aligning with the stance adopted by Jay Clayton during the initial Trump administration, encapsulating his sentiment as,
“Continuing Chair Clayton’s legacy is an honor. Our differences are minimal.”