Gary Gensler stands firm on crypto enforcement despite impending takedown

Gensler, who is potentially weeks away from being replaced as head of the SEC by President-elect Donald Trump, has remained defiant and true to his stance on crypto and enforcement.

In a speech in New York on November 14, Gensler said that “not every (crypto) asset is a security.”

He added that former SEC Chairman Jay Clayton and himself have said that Bitcoin is not a security, “and the Commission has never treated Bitcoin as a security.”

Cryptos are still securities

However, he still believes that most other crypto assets are securities even though there is no legal or congressional classification yet.

“Our focus, rather, has been on some of the 10,000 or so other digital assets, many of which the courts have ruled were being offered or sold as securities.”

Gensler reiterated the same two points he has made to justify his barrage of lawsuits over the past few years:

“First, parties offering or selling securities to the public must register and provide adequate information to the public. Second, intermediaries (broker dealers, exchanges, clearing houses) must be registered and adequately regulated with respect to conflicts, disclosures and business conduct.”

However, industry executives have repeatedly pointed out that there is no means to register because their firms are not stockbrokers.

Gensler went on to state that crypto is “a field where over the years there has been significant harm to investors” before citing the same tired arguments about “illicit activities” and declaring that “the vast majority of assets cryptographics have not yet demonstrated sustainable use cases.”

On November 14, 18 US states filed a lawsuit against Gensler, accusing the SEC of “government overreach” against the crypto industry.

SCOOP: 18 US states have filed suit @SECGov and its commissioners, accusing them of unconstitutional excess and unjust persecution of the #crypto industry under the leadership of the agency head @GaryGensler.

The lawsuit, signed by 18 Republican attorneys general,… pic.twitter.com/wxOovuIRQH

— Eleanor Terrett (@EleanorTerrett) November 14, 2024

Resign?

Gensler signed off, hinting that he may be on the verge of stepping down, saying, “I have been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the financial highways “.

The SEC chairman’s term officially ends in June 2026. However, the crypto industry and investors remain hopeful that Trump will follow through on his promise to fire Gensler “on day one” if elected.

Ripple’s cross-border token XRP reacted strongly, surging 18% to above $0.83 in the Asian trading session on Friday morning, as investors saw renewed hope that the legal battle of four years with the SEC could soon be overturned.

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