18 GOP AGs sue SEC as Gensler hints resignation

Donald Trump’s promise to create a US SEC without Gary Gensler may be realized ahead of schedule amid state lawsuits and resignation discussions.

Wall Street’s top cop is accused of “unconstitutional excessive interference” and “unjustified persecution” of the $3 trillion cryptocurrency industry, according to a lawsuit signed by 18 Republican attorneys general.

The lawsuit alleges that the United States Securities and Exchange Commission and its commissioners, led by chairman Gary Gensler, overstepped their jurisdiction and ignored the state’s economic autonomy.

NOW: 🇺🇸 18 US states are suing the SEC for unconstitutional overreach and unjust persecution of the crypto industry under Gary Gensler – Fox Business’ Eleanor Terrett pic.twitter.com/wZ40bQL5Ch

— Bitcoin Magazine (@BitcoinMagazine) November 14, 2024

The lawsuits from GOP AGs and states have contributed to the current scrutiny of Gensler’s SEC career. Top lawmakers launched an investigation into the SEC’s hiring practices over suspicions of politically biased hiring, prompting the probe.

Several members of Congress called for his resignation, and Donald Trump promised the digital asset industry that he would remove Gensler from office.

Is Gary Gensler retiring?

Speculation has been circulating on social media that Gensler may leave as SEC Chairman. His comments in a Nov. 14 memo, calling his time at the SEC “a great honor” and praising his colleagues for their dedication, fueled rumors that he might retire soon.

The SEC is a remarkable institution. The Staff and the Commission are highly mission-oriented, focused on protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.

Gary Gensler, SEC Chairman

He added that it is a privilege to serve at the SEC “doing the people’s job and ensuring our capital markets remain the best in the world.”

A firm stance on crypto regulation has marked Gensler’s tenure at the securities regulator. After years of grappling with Gensler’s regulatory approach, blockchain industry players increasingly expect the SEC to make changes in leadership and policy enforcement.

The SEC has ongoing lawsuits against companies like Coinbase and Ripple (XRP). Gensler’s potential departure has therefore become the focus of speculation about how regulatory policies might change under new leadership.