Gary Gensler Remains Steadfast on Crypto Enforcement Despite Looming Ouster

As a seasoned analyst with years of experience navigating the complex world of financial regulation, I find myself intrigued by Gary Gensler’s latest stance on cryptocurrencies. His defiant approach, despite potentially being replaced soon, is a testament to his unwavering commitment to investor protection.

Despite the possibility that he may soon step down as the head of the SEC due to President-elect Donald Trump’s impending administration, Gensler continues to stand firm in his views and approach towards cryptocurrency and enforcement.

In a speech in New York on Nov. 14, Gensler said that “not every [crypto] asset is a security.”

He added that former SEC Chairman Jay Clayton and himself have both said that Bitcoin is not a security, “and the Commission has never treated Bitcoin as a security.”

Cryptos Are Still Securities

Even though there hasn’t been any official legal or congressional classification, he maintains the view that the majority of other cryptocurrencies are considered securities.

Instead, our attention has primarily shifted towards approximately 10,000 alternative digital assets. A significant number of these have been classified by courts as securities when they were either offered or sold.

Gensler continually emphasized the same two arguments he’s used to defend his series of lawsuits during the past few years.

As a crypto investor, it’s crucial to understand that any entities peddling or dealing in securities meant for public consumption should comply with registration requirements and provide transparent information to the public.

From my perspective as an analyst, I’ve noticed a recurring issue where some industry professionals mention their companies can’t register due to the fact they don’t fall under the category of securities brokers.

Gensler went on to emphasize that cryptocurrency has historically caused a lot of damage to investors, pointing out concerns such as illicit activities and the lack of proven practical applications for most digital assets.

14th November marked the day when 18 U.S. states lodged a legal complaint against Gensler, alleging that the Securities and Exchange Commission (SEC) was unjustly exerting excessive control over the cryptocurrency sector, often referred to as “excessive government intervention.

NEWS FLASH: A group of 18 U.S. states have initiated a lawsuit against the Securities and Exchange Commission (SEC) and its commissioners, alleging that they are overstepping their constitutional boundaries and unfairly targeting the cryptocurrency sector under the leadership of Chairman Gary Gensler. This action is aimed at protecting the #crypto industry from what they perceive as unjust treatment.
The lawsuit, signed by 18 Republican Attorneys General,…
— Eleanor Terrett (@EleanorTerrett) November 14, 2024

Stepping Down?

Gensler indicated a possible departure from his role at the SEC by expressing pride for collaborating with his fellow commissioners, whom he described as diligently working to safeguard American families as they navigate the financial marketplace.

The term of the SEC chairman is set to expire in June 2026. Nonetheless, there’s optimism within the cryptocurrency sector and among investors that, should he win, Trump might fulfill his pledge to dismiss Gensler from his position on his very first day in office.

During the early hours of trading in Asia on Friday, Ripple‘s cross-border token XRP experienced a significant surge, climbing by 18% to reach a peak of $0.83. This upward movement was driven by investor optimism that the prolonged legal dispute with the SEC might be nearing resolution, potentially restoring confidence in the asset.

2024-11-15 11:02

Gary Gensler Remains Steadfast on Crypto Enforcement Despite Looming Ouster

Cryptos Are Still Securities

Stepping Down?

Read More

Minority Mindset