Gensler’s Final Swipe at The Industry

Gensler’s SEC leadership was marked by aggressive enforcement against cryptocurrency firms and his controversial stance on classifying digital assets as securities.
Despite teaching blockchain at MIT, his tenure disappointed crypto industry hopes for positive regulation, focusing instead on enforcement and sceptical rhetoric.
His final significant action was approving Bitcoin spot ETFs in 2024, though this came primarily due to court pressure rather than willing regulatory embrace.

With Gary Gensler’s days at the US Securities and Exchange Commission (SEC) numbered, it’s time to look at what remains from his tenure. Well, mostly lawsuits upon lawsuits and enforcement actions toward the crypto industry.

Related: Ripple Integrates Chainlink Standard for Secure Pricing Data on New RLUSD Stablecoin

Oh, and colourful and creative expressions. The time with Gensler was certainly not boring, although it was tough to endure at times.

What on Earth are Crypto Asset Securities, Gary?

Gensler, a former Goldman Sachs man, is well-known for vivid and sometimes obscure verbal creations that will remain long after he is gone.

Think of ‘digital asset securities’, there’s no such thing really, but Gensler has insisted on using the term to put all cryptocurrencies (it’s in the name, right there) in the same securities basket, despite them not having hallmark characteristics of actual securities.

But, let’s set aside what a security is and isn’t – which still seems unclear in the US context – although local courts seem to be more willing to say crypto generally does not fit in that category.

Gensler also called the crypto industry the ‘wild west’, said ‘the rules of the road are clear’, and urged more than anyone can count to “come in and register with us”, meaning that crypto firms, token issuers and the like should be registering with the SEC. Many, like the CEO of Ripple, Brad Garlinghouse, have disputed that this is even possible.

So, it’s mainly lawsuits and ramblings about crypto that remain in the memory of crypto degens when they think of Gensler.

MIT Prof Turns Thesis on Its Head, Says Industry Lacks Substance

Which is a shame, because when Gensler joined the SEC as chair, after being nominated by President Joe Biden, there had been hopes that he would be positive for the industry. After all, he gave lectures on blockchain and Bitcoin at MIT in 2018. What changed you, Gary?

There’s one positive aspect that does stand out though. Gensler cast the deciding vote for a Spot Bitcoin exchange-traded fund (ETF) in 2024. As we know now these funds have been a huge success, so there’s that at least.

Although, Gensler did admit that his hand was really forced when a judge basically said the SEC can’t and shouldn’t delay the approval any longer. But hey, who’s complaining.

And if all that wasn’t enough and you would think Gensler would at least leave the industry with some kind words (okay, I’m kidding here, maybe…fewer damaging words), he just had to crank it up a notch.

Related: Czech National Bank Considers Adding Bitcoin to Reserves: Which Other Countries Might Follow?

During an interview with Bloomberg Television on Wednesday (in what will be one of his last interviews as SEC boss) Gensler said he believes the SEC is not done with regulating altcoins and that most crypto projects won’t make it.

I’ve never seen a field that’s so much wrapped up in sentiment and not so much about fundamentals.

Gary Gensler, soon-to-be former SEC Chair