On November 21, Gary Gensler announced on the social media platform X that he would resign as the Chair of the Securities and Exchange Commission (SEC) on January 20, 2025. He expressed gratitude for his tenure. His departure has prompted reactions from the cryptocurrency community, which has raised concerns about his enforcement-focused regulatory approach.
"You were the worst bureaucrat we had in years & that’s saying something," said Sally Mayweather, a crypto influencer on X.
During Gensler's tenure, he oversaw legal actions against major cryptocurrency exchanges such as Coinbase and Binance, accusing them of violating securities laws. These actions were intended to reinforce the SEC’s commitment to investor protection but were met with criticism from industry leaders who argued they were overly aggressive and could hinder innovation.
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"The ‘incredible responsibility’ of protecting no one and crippling an entire industry by ‘enforcing the law without fear or favor’ ... Bye bye Gary," said Krippenreiter, a crypto enthusiast on X.
The announcement of Gensler’s departure has been met with optimism within the crypto sector. Bitcoin prices have risen, approaching the $100,000 mark, reflecting a belief that the incoming administration may adopt a more balanced approach to regulation. As the SEC prepares for new leadership, stakeholders are anticipating policies that balance innovation with market protection.
In November 2024, 18 state attorneys general filed a lawsuit against the SEC, alleging that the agency exceeded its authority in regulating the cryptocurrency industry. According to a Social Capital Markets report, crypto firms and individuals incurred over $7.42 billion in fines between 2013 and 2024, with 63% of those penalties issued in 2024.