YEREVAN (CoinChapter.com) — Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), recently discussed his tenure and regulatory actions in a Bloomberg Markets interview. Gensler, who will step down on Jan 20, 2025, reflected on crypto regulation and the broader challenges of overseeing the $120 trillion U.S. capital markets.
Gary Gensler Interview BloombergTV. Source: XCrypto Enforcement Under Gary Gensler
During his term, Gensler prioritized enforcement in the crypto industry, describing it as “rife with bad actors.” Under his leadership, the SEC filed over 100 crypto-related cases, following the 80 cases brought by his predecessor, Jay Clayton.
These enforcement actions targeted fraudulent schemes, including pump-and-dump operations and misconduct by figures like Sam Bankman-Fried, Changpeng Zhao (CZ), and Do Kwon. Gensler noted that their activities caused billions of dollars in investor losses, emphasizing the persistent non-compliance within the crypto space.
Bitcoin, which accounts for 66% to 80% of the crypto market, was singled out as a dominant force. Gensler contrasted Bitcoin with the 10,000 to 15,000 altcoins he described as highly speculative, with many unlikely to survive.
Bitcoin Dominance Chart. Source: CoinGeckoSEC’s Role in Investor Protection
Gensler underscored the SEC’s mission to safeguard everyday investors by ensuring market fairness and transparency. He highlighted initiatives such as reducing the stock settlement cycle from two days to one and introducing rules requiring companies to notify consumers of data breaches.
He also warned that crypto investments rely heavily on sentiment rather than fundamentals, making them volatile and speculative. According to SEC and Federal Reserve surveys, less than 10% of Americans invest in cryptocurrencies, which Gensler said should prompt caution.
Gensler emphasized the need for compliance among intermediaries like brokers and exchanges. He noted that these entities often resist changes designed to benefit everyday investors, reflecting broader tensions in the industry.
Gensler’s Transition from Academia to Regulation
Addressing his academic background, Gensler explained his approach to crypto. At MIT, he studied blockchain technologies and taught their value propositions. However, he stated,
“In this role, you’re sworn to protect the investing public, and that means addressing challenges and non-compliance.”
This perspective guided Gensler’s regulatory actions, focusing on enforcing securities laws to protect investors in a rapidly evolving financial landscape.
Climate Risk Disclosure Rules
Gensler also discussed the SEC’s efforts to standardize climate risk disclosures. Over 60% of the top 1,000 U.S. companies already report greenhouse gas emissions, driven by investor demand for material information.
The SEC’s rules require companies to disclose direct emissions and how they manage related risks. Gensler highlighted that these disclosures aim to bring consistency and transparency to capital markets, aligning with the needs of investors.
Who Could Succeed Gary Gensler as SEC Chair?
President-elect Donald Trump has nominated Paul Atkins to serve as the next chair of the U.S. Securities and Exchange Commission (SEC). Atkins is set to replace Gary Gensler, who will step down on the day Trump takes office.
Paul Atkins, an SEC commissioner from 2002 to 2008, is known for advocating free-market policies and opposing enforcement-heavy regulatory approaches. He has expressed support for the cryptocurrency industry, a stark contrast to Gensler’s stricter stance on digital assets. Trump praised Atkins in a statement, describing him as a leader committed to “common-sense regulations” and the importance of digital assets in strengthening U.S. markets.
Paul Atkins SEC Nomination. Source: Truth Social
The crypto industry, which often criticized Gensler’s enforcement-focused strategies, has reacted positively to Atkins’ nomination, viewing it as a potential shift in the SEC’s approach to regulating digital assets.
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