The SEC’s War on Crypto Could End Trump

Gary Gensler’s SEC has taken one of the most aggressive regulatory actions against the crypto industry in US history, deeming most digital assets unregistered securities under decades-old financial laws.

However, the recent Republican landslide at the polls could lead to a rollback of the securities regulator’s enforcement measures, according to Bloomberg.

Additionally, President Trump pledged at the Bitcoin Nashville conference in July to fire Gensler “on day one” when elected.

Time for a change

Gensler’s replacement is expected to prompt new regulations that will modify existing securities laws. This will allow crypto companies to register and comply with the rules that Gensler has been suing them for breaking, the report notes.

Jack Inglis, chief executive of the London-based Alternative Investment Management Association, said: “We expect both the Trump administration’s and the new Congress’ approach to crypto regulation to be much more constructive”.

A change in SEC leadership could lead to new regulations more tailored to crypto companies, a reduced focus on enforcement and lawsuits, and better prospects for bipartisan legislation.

On Nov. 7, ETF Store president Nate Geraci mockingly predicted that Gensler would “join a crypto-related company after Trump’s inauguration,” adding, “You’re all going to disintegrate!”

Former SEC enforcement director William McLucas said using the decades-old Howey test was not a good approach, adding:

“That can’t be the solution because whether you like crypto or not, it’s not going away. The enforcement cases that have been presented are what they are, but they continue to bring them and we continue to see crypto products.”

Coinbase Chief Legal Officer Paul Grewal told Fox Business that he expects to see “significant changes” in the SEC’s crypto caseload under a new Trump-appointed presidency.

“I believe the new administration will take a fresh look at all existing cryptocurrency cases under Gary Gensler and distinguish between those targeted at what are clearly scams and fraud and those that are not.”

Like I said: stop suing crypto. Start talking crypto. Start making rules now. There is no reason to wait. https://t.co/xBcvpGRk6e

— paulgrewal.eth (@iampaulgrewal) November 7, 2024

American Securities Association President and CEO Chris Iacovella told Bloomberg: “Last night, the people voted for this country to take a new direction, and Chairman Gensler should honor that vote by resigning immediately in his charge”.

Ending the War on Crypto

During his “reign of terror” as SEC chairman, Gary Gensler has targeted some of the biggest crypto companies in the US and abroad, including Ripple, Coinbase, Binance, Kraken, DRW Holdings , OpenSea, ConsenSys and Uniswap.

Almost all cases have revolved around the same premise: their view that digital assets are contracts of value.

As if anticipating calmer regulatory seas, crypto markets have surged to five-month highs, with Bitcoin leading the pack.

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