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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Outgoing SEC Chair Gary Gensler has reiterated his criticism of the crypto industry, saying he has never encountered a sector driven more by sentiment than by fundamentals.
During a Bloomberg Television interview on Wednesday, Gensler said he believes that many crypto projects are unlikely to survive.
The top regulator further highlighted the need for stricter regulation of altcoins and intermediaries in the digital asset market. He noted that everyday investors still lack proper disclosures and sufficient information from these firms.
Under Gensler, SEC Intensified Crypto Regulation with 100+ Cases and Major Exchange Crackdowns
Gensler noted in the Bloomberg interview that his predecessor, Jay Clayton, initiated around 80 enforcement actions related to crypto during Trump’s first term. Under Gensler’s leadership, this number increased to about 100 cases.
Clayton took notable action against the crypto industry, including the high-profile lawsuit against Ripple Labs for allegedly selling unregistered securities through XRP tokens, which marked one of his final moves before leaving the SEC.
Under Gensler, the SEC ramped up its enforcement efforts, targeting major platforms like Coinbase and Binance for allegedly operating unregistered securities exchanges. His approach, often criticized as “regulation by enforcement,” relied on legal actions to clarify what the SEC considers a security in the crypto space.
Gensler Demands Compliance in Crypto
Gensler has consistently criticized the crypto industry, warning that it is filled with fraud, scams and abuse. He has compared the crypto market to the 1920s stock market, which hucksters, fraudsters and Ponzi schemes controlled.
He has underscored the need for the crypto sector to follow securities laws, suggesting that many crypto tokens may qualify as securities. Additionally, he has highlighted issues like noncompliance, market manipulation and frequent bankruptcies in the industry.
Paul Atkins Appointed SEC Chair, Likely to Support Pro-Crypto Regulatory Framework
In November, Gensler revealed plans to resign on Jan. 20, 2025, aligning with President-elect Donald Trump’s inauguration. His departure signals a possible shift in crypto regulation, with expectations of a more favorable stance from the incoming administration.
Looking back on his tenure, Gensler remarked: “It has been an honor of a lifetime to serve… and ensure that our capital markets remain the best in the world.”
Meanwhile, Trump has now appointed former SEC commissioner Paul Atkins to lead the agency. Atkins is expected to significantly scale back enforcement actions against digital asset firms and take a more favorable approach toward the industry.
He has openly called for clear and balanced regulations that encourage innovation rather than stifle it. His support for cryptocurrencies is evident through his involvement with the Token Alliance, a crypto advocacy group, and his role on the advisory board of the Chamber of Digital Commerce.
