Crypto should comply with securities laws

Gary Gensler once again called on the crypto industry to follow current federal policies in the twilight of his SEC career.

According to Bloomberg, in remarks prepared for the Practicing Law Institute’s 56th Annual Securities Regulatory Institute, Gensler implored crypto actors to adopt compliance and disclosure practices.

Reiterating his usual stance, the chairman of the US Securities and Exchange Commission noted that most of the 10,000-plus cryptocurrencies are securities, with only Bitcoin (BTC), Ethereum (ETH) and stablecoins expressly excluded in his general statement.

Gensler also expressed his gratitude to the agency’s employees for their support of efforts to implement federal regulation of America’s financial markets.

It has been a great honor to serve with them, to do the people’s work and to ensure that our capital markets remain the best in the world.

Gary Gensler, SEC Chairman

The crypto community is no stranger to the regulator’s thoughts. However, some suggested that his comments at the event appeared to be a farewell message of sorts. His term technically runs until 2026, and a different outcome in the US presidential election could have cemented his SEC chairmanship. However, pro-crypto Donald Trump outvoted Kamala Harris in the voting, and uncertainty loomed over Gensler’s SEC future.

Trump’s agenda will lead to the impeachment of the SEC chairman, as the president-elect has vowed to fire Gensler on his first day in office and end the government’s crypto crackdown.

There is debate about whether Trump would have the constitutional authority to immediately fire the SEC’s boss. What is known is that Trump’s first option might be an open invitation for the SEC chairman and other federal agency leaders to resign their positions.

The SEC chairman had not indicated at press time whether he would resign after Trump’s inauguration. Names like Robinhood’s CLO Dan Gallagher and SEC commissioner Hester Peirce have emerged as potential candidates to lead the securities regulator under the Trump administration.