(Kitco News) – Cryptocurrencies showed strength in afternoon trading on Thursday after news broke that Securities and Exchange Commission (SEC) Chair Gary Gensler has announced that he will be stepping down on January 20, 2025.
Gensler has spearheaded the regulator's push to rein in the crypto industry over the past several years, drawing ire from the community for what many called ‘regulation by enforcement,’ as the agency launched multiple enforcement actions against digital asset companies while shirking its obligation to present a clear, comprehensive regulatory framework.
“The Securities and Exchange Commission is a remarkable agency,” Gensler said in a press release announcing his departure. “The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.”
“I thank President Biden for entrusting me with this incredible responsibility,” he added. “The SEC has met our mission and enforced the law without fear or favor. I’ve greatly enjoyed working with my fellow Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues across the U.S. government, and fellow regulators around the world.”
Gensler ascended to the role of SEC Chair on April 17, 2021, and led the push for central clearing in Treasury markets, implemented changes on executive pay versus performance, and continued working to protect investors in crypto markets.
But his efforts put him at odds with the broader community, especially in the wake of the agency unveiling enforcement actions against big industry players, including Coinbase, Binance and Kraken.
“In the last full fiscal year, according to the SEC’s Office of the Inspector General, 18 percent of the SEC’s tips, complaints, and referrals were crypto-related, despite the crypto markets comprising less than 1 percent of the U.S. capital markets,” the release said. “Court after court agreed with the Commission’s actions to protect investors and rejected all arguments that the SEC cannot enforce the law when securities are being offered—whatever their form.”
Gensler stuck to his guns throughout his tenure, maintaining that most cryptocurrencies qualify as securities, which is the focus of an ongoing battle between the SEC and Commodity Futures Trading Commission (CFTC) over which agency should oversee the asset class.
The announcement of his departure comes after President-elect Donald Trump pledged to fire Gensler if elected. Trump's second term as president starts on Jan. 20.
Trump explores Crypto Czar role
In other news that has excited the crypto faithful, reports have emerged suggesting that Trump is considering creating a new White House post dedicated entirely to cryptocurrency policy.
According to Bloomberg, Trump’s team is talking to industry executives to decide whether the role is needed and vetting potential candidates, people familiar with the discussions told the outlet.
If he follows through with creating a senior White House staff position or ‘Crypto Czar,’ it would be the first-ever crypto-specific White House post, highlighting the rising stature of the asset class and the importance it holds for the Trump administration. Advocates for the industry are pushing for the role to have a direct line to Trump, the sources said.
The discussions about the potential new crypto role have included the possibility of one person leading a small staff and acting as a liaison between Congress, the White House, and regulators, the people said.
Some of the talks have taken place at Mar-a-Lago, Trump’s private club in Florida, including interviews of prospective candidtaions. Some of the names being considered include Coinbase CEO Brian Armstrong, former Coinbase and Binance executive Brian Brooks, and former CFTC Chair Chris Giancarlo, who is often referred to as “Crypto Dad” by members of the community.
These developments have combined with the post-halving cycle to propel Bitcoin (BTC) to a new record high of $99,123 on Thursday. At the time of writing, BTC trades at $98,646, an increase of 5.45% on the 24-hour chart.
