Fri November 15, 2024 ▪
4
min read ▪ by
Gary Gensler, the current president of the SEC, has just thrown stones at the pond by mentioning a possible departure. This announcement resonates like an earthquake in the world of crypto. Indeed, his mandate was marked by a strict and controversial approach to the regulation of these assets, with increased surveillance and the application of sanctions against certain players in the sector. The announcement of this possible departure comes in a tense political context, while Donald Trump, currently reinstated, has expressed his firm intention to remove Gensler from his functions upon his return to the White House.
An unexpected statement from Gary Gensler
In a statement that quickly caught the attention of financial players, Gary Gensler raised the possibility of stepping down from his post as chairman of the SEC. His comments, relayed on social networks, sparked strong reactions in the sector, with some welcoming this news and others wondering about the future of events. “Everything we did was focused on complying with the laws,” he said. He recalled the SEC’s efforts to impose transparency rules on companies in the crypto sector. Under Gensler’s leadership, the commission increased its number of trials with strict regulations. This makes the SEC a key player in regulating cryptos.
Such a proactive approach has, however, often been criticized by sector entrepreneurs and investors, who consider these measures to be a hindrance to innovation. Gensler, for his part, argued that regulation is essential to protect investors. Furthermore, he emphasizes that the lack of transparency can hinder the development of sustainable projects in this area. However, his detractors view him as an authoritarian figure, who hinders the growth of the crypto ecosystem with bureaucratic demands.
An uncertain future for cryptocurrency regulation under Trump
Along with Gensler’s statement, Donald Trump reiterated his intention to oust him as soon as he returns to power. Trump, who positions himself as a defender of the crypto industry, believes that Gensler’s regulations have placed an undue drag on the booming sector. “He will be expelled on my first day,” he said in a recent speech. The president-elect promises crypto players a new era of freedom and government support. Indeed, Trump’s stance could herald a regulatory upheaval for the ecosystem, where a more lenient and less intrusive approach could replace Gensler’s tough stance.
However, the transition will not be without difficulties. The process for replacing SEC leadership will require Senate approval, and it is possible that Congress will oppose any sweeping changes to current policy. Furthermore, some observers warn of the risks of overly permissive regulation, which could attract fraudulent activities and thus increase the vulnerability of investors, potentially threatening the reputation of cryptos.
The potential departure of Gary Gensler raises both hope and concern within the crypto industry. While some see an opportunity for less regulated development, others fear a decline in transparency and security standards. This situation leads to a fundamental dilemma: how to reconcile investor protection and promotion of innovation? Whatever happens, upcoming policy decisions will determine the crypto regulatory landscape in the United States for years to come.
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A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
