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Gary Gensler’s Farewell Interview: SEC’s Stance on Cryptocurrencies
On January 14, 2025, Gary Gensler sat down for a farewell interview with CNBC, where he shared his thoughts on the cryptocurrency sector and his tenure as the chairman of the Securities and Exchange Commission (SEC). Gensler will step down as SEC chair on January 20, 2025.
Trump 2.0 and the Crypto Industry
Gensler acknowledged that donors from the cryptocurrency field played a significant role in sponsoring Trump’s campaign. However, he emphasized that the election was not about cryptocurrencies. Gensler’s predecessor, Jay Clayton, who will serve in the new Trump administration, brought up 80 cases during his past tenure. This suggests that the new administration may not tolerate lawbreakers, regardless of their pro-crypto stance.
Gensler’s Stance on Cryptocurrencies as Securities
Gensler has been consistent in his view that most cryptocurrencies are unregistered securities. He believes that these projects must adhere to existing securities laws, which many fail to comply with. Gensler argues that cryptocurrencies are often traded based on sentiment rather than fundamentals, and companies should make disclosures adhering to securities laws if they have a legitimate business model.
“If the fundamentals are there, crypto companies should make disclosures adhering to the securities laws.”
Gensler’s Views on Bitcoin and Other Cryptocurrencies
Gensler stated that Bitcoin is not a security but acknowledged that it is a highly volatile speculative asset. In contrast, he views other cryptocurrencies as posing a threat to the investing public, citing concerns about fraud, money laundering, and other crimes. Gensler also expressed concerns that exchanges are “trading against their customers.”
Lessons Learned and Future Outlook
Gensler’s tenure as SEC chair has been marked by his battles with crypto companies, including Binance, Coinbase, Ripple, and Gemini. Despite his efforts, Bitcoin remains popular, and the cryptocurrency sector continues to grow. As Gensler steps down, it remains to be seen how his legacy will shape the future of cryptocurrency regulation.
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