Ahead of Donald Trump’s team taking office, US SEC Chair Gary Gensler has reiterated his commitment to regulating the cryptocurrency market, stating that stricter oversight is necessary to protect investors. Speaking at the Practicing Law Institute’s Annual Institute on Securities Regulation in New York, Gensler highlighted the importance of clear “rules of the road” for the industry.
Gensler has also pointed out that many of these assets are securities and should, as such, be regulated by existing securities laws, which include the disclosure and registration rules.
US SEC Chair Gary Gensler’s Stance on Crypto Regulation
US SEC Chair Gary Gensler has argued that the cryptocurrency market needs regulatory safeguards similar to those in traditional financial markets. He emphasized that while Bitcoin is the only asset that does not fall under the category of securities, other forms of digital assets should be considered securities based on the current legal framework.
Gensler said, “Court after court has agreed with our actions to protect investors,” pointing out that the SEC is empowered to implement these laws in the crypto sector.
Gensler pointed out that most other digital assets outside of Bitcoin have yet to demonstrate clear utility and could potentially threaten investors. His comments are made just as a last attempt to build regulatory frameworks before the new Trump administration takes office, with candidates like Robinhood CLO Dan Gallagher emerging as the leading candidates to replace Gensler.
Gary Gensler Highlights SEC Accomplishments
In his speech, US SEC Chair Gary Gensler outlined some of the regulatory measures he has implemented since taking office. He mentioned new requirements for enhancing the quality of information companies provide, such as those concerning executive compensation and data breaches.
Gensler also discussed improvements in market infrastructure, including the accelerated settlement period for stocks and stricter rules for Treasury clearing.
Besides his achievements, Gensler also mentioned that he was proud of his work at the SEC, calling it “a remarkable agency.” He thanked his colleagues and noted that the US SEC will still play a significant part in ensuring that there are proper protections for investors in the United States. Gary Gensler’s comments amid speculations that he could resign this week.
Resignation Calls and Future of the SEC
Since Donald Trump’s re-election, Gary Gensler has come under pressure to resign, including from ex-SEC official John Reed Stark. Stark, an outspoken opponent of Gensler’s regulation of the cryptocurrency industry, said that Gensler should leave the position to make it easier for the new SEC chairman to come in.
Gary Gensler has, however, not given any signs of quitting his position despite the calls for his resignation. Some have opined that he may resign in the event that Trump appoints a new SEC chairperson with a friendly disposition towards cryptocurrencies. Donald Trump has expressed his desire to create a conducive environment for cryptocurrency, which will lead to changes in the agency’s policies and the firing of Gensler.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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