Securities and Exchange Commission (SEC) chair Gary Gensler has reiterated his stance on cryptocurrency regulation in what may have been his final pitch ahead of an expected shift in the SEC’s leadership under the incoming Trump administration.
President-elect Donald Trump has expressed intentions to overhaul the SEC’s approach to digital assets, including promising to fire Gensler from his position on “day one” if elected. The SEC chair’s term was due to end in June 2026.
In remarks prepared for the Practicing Law Institute’s annual conference in New York, Gensler on Thursday emphasized the need for clear regulations in crypto markets, particularly for digital assets and their intermediaries such as brokers and exchanges, to ensure proper disclosure and investor protection.
He emphasized that the SEC’s role is to ensure transparency and compliance within the crypto industry. He reiterated his belief that while Bitcoin itself is not a security, many of the approximately 10,000 other digital assets in the market are securities and must adhere to the same rules as traditional financial products.
He defended the SEC’s actions related to crypto, Gensler pointed to the Commission’s legal victories in regulating crypto-related investment products, such as Bitcoin exchange-traded funds (ETFs) and futures.
“Court after court has agreed with our actions to protect investors and rejected all arguments that the SEC cannot enforce the law when securities are being offered—whatever their form,” he said.
However, he also voiced concern over the industry's noncompliance with regulatory standards.
“This is a field in which over the years there has been significant investor harm,” Gensler noted, adding that “the vast majority of crypto assets have yet to prove out sustainable use cases.”
While Gensler did not address his potential departure directly, the tone of his speech suggested he may be on his way out.
He reflected on his time with the SEC and his “remarkable” colleagues, stating: “It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world.”