As a seasoned crypto investor with over a decade of experience navigating this volatile and ever-evolving market, I can confidently say that Gary Gensler’s impending resignation from the SEC is a breath of fresh air for many in our community. His tenure has been marked by an intense crackdown on the industry, often perceived as heavy-handed and unjustified.
In simpler terms, the person often seen as a challenge for cryptocurrency businesses, Gary Gensler, is planning to leave his position as Chair of the U.S. Securities and Exchange Commission (SEC). This announcement sparked excitement in the market, causing Ripple (XRP) to rise by almost 26%, and Bitcoin (BTC) approaching the significant price point of $100,000.
On the day of President-elect Donald Trump’s inauguration in January 2025, Gary Gensler, currently serving as the 33rd Chairman of the US Securities and Exchange Commission (SEC), plans to step down from his position.
Gensler to Resign the Day of Trump’s Inauguration
On January 20, 2025, Gary Gensler, the current head of the U.S. Securities and Exchange Commission (SEC), has announced his intention to step down from his position. Gensler assumed the role in April 2021 and has chosen to resign on the same day as President-elect Donald Trump’s inauguration.
The agency made an announcement, sharing details about Gensler’s achievements since taking on the role following the GameStop market incidents, in a press statement.
Under his guidance, the agency followed a vigorous regulatory plan aimed at improving effectiveness, reliability, and honesty within U.S. financial markets. Additionally, he managed significant investigative actions to penalize offenders and restore funds totaling billions to defrauded investors, as stated by the SEC.
Mr Gensler confirmed the news on X (formerly Twitter).
On January 20, 2025 I will be stepping down as @SECGov Chair.A thread 🧵⬇️
— Gary Gensler (@GaryGensler) November 21, 2024
Adding,
The Securities and Exchange Commission (SEC) stands out as an exceptional institution. Its team and commission members are incredibly dedicated, with a primary goal of safeguarding investors, promoting market growth, and ensuring that the markets serve both investors and issuers equitably. The staff can be considered genuine public servants.
In a thread, Gensler thanked President Joe Biden for entrusting him with the role, stating:
“The SEC has met our mission and enforced the law without fear or favor.”
Despite Gensler’s term not ending until 2026, he chose to step down early due to conflicting views with Donald Trump regarding cryptocurrencies. Trump had announced plans to dismiss Gensler immediately upon taking office, in response to Gensler’s legal actions against crypto companies. Under the Biden administration, Gensler and the SEC intensified their scrutiny of the industry, reaching a record high of 46 enforcement actions in 2023, including cases against Coinbase and Binance. The chairman has been vocal about his criticism of the crypto industry, labeling it as “full of fraud, con artists” and having poor compliance standards.
The SEC’s Crypto Crackdown
Under the guidance of Chair Gensler, the Securities and Exchange Commission (SEC) intensified its regulatory scrutiny over cryptocurrencies. Gensler often referred to the crypto industry as a chaotic environment teeming with unscrupulous individuals looking to defraud unsuspecting investors. During a budget hearing where additional funds were requested for enforcement purposes, Gensler notably stated that his agency serves as the sole “watchman” in this domain, working tirelessly to combat deceitful practices.
Additionally, we’ve witnessed the unregulated frontier of cryptocurrency trading, characterized by a lack of compliance, in which investors have invested their savings in a volatile market with high risk and speculation.
In their aggressive stance towards the cryptocurrency sector, the Securities and Exchange Commission (SEC) has been criticized for overstepping legal boundaries. By pushing to classify cryptocurrencies as securities and thereby bringing them under its jurisdiction, the SEC took harsh actions against several crypto firms without any oversight from Congress. The U.S. House Financial Services Committee raised concerns about these actions, prompting Gensler to explain the SEC’s regulations and approach towards the industry. Under Gensler’s leadership, the SEC has faced intense criticism, with many labeling its actions as a “risky regulatory onslaught” against cryptocurrencies.
Ripple’s XRP Surges As News Spreads
For some time, the Securities and Exchange Commission (SEC) has been embroiled in a high-profile legal dispute with Ripple Labs. In 2020, the SEC filed a lawsuit against Ripple for allegedly violating securities laws, leading several exchanges like Coinbase, Kraken, Bitstamp, and Gemini to delist XRP. However, in 2023, Ripple achieved a partial victory in court when Judge Analisa Torres of the Southern District of New York ruled that the XRP token may not always be considered a security. This decision marked an end to the SEC’s three-year legal pursuit of Ripple.
It’s not surprising that Gensler expressed his “disappointment” following Judge Torres’ decision. This disappointment sparked a strong response from Ripple CEO Brad Garlinghouse, who accused the SEC of creating confusion in the regulatory landscape of cryptocurrencies. In response, Garlinghouse stated:
The SEC finds itself at the center of a predicament, claiming to be the watchdog in the cryptocurrency world, yet lacking the necessary legal authority. This has led us to a situation where consumers are dealing with the aftermath in bankruptcy courts, while the SEC continues to hold press conferences.
A large part of the industry undoubtedly shares Garlinghouse’s sentiments.
Since the news of Gensler’s impending departure, XRP has surged approximately 25%, peaking at a daily high of $1.43.
In response to the latest news, the crypto market and its community have enthusiastically welcomed it, pushing Bitcoin (BTC) closer to hitting the $100,000 milestone. Meanwhile, situation X has sparked a flurry of humorous comments from key players in the industry.
Is it true that the SEC only works one day a month in the office?
— Elon Musk (@elonmusk) November 21, 2024
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2024-11-22 12:07