SEC Chair Gary Gensler has stood his ground, defending the agency’s regulatory approach despite facing pressure from both sides of the political spectrum and former President Donald Trump’s threat to remove him if he were to be re-elected.
Speaking at a financial technology conference in Las Vegas, Gensler emphasized his determination to continue his work at the SEC during his tenure. He acknowledged the political pressures, particularly from the cryptocurrency industry, as the November 5th election approaches, stating:
“Democracies have consequences, but we’re going to persist in doing what we do best at the SEC until the referees blow the whistle.”
As the election draws nearer, dissatisfaction with Gensler has been expressed by both Republicans and Democrats. Trump has pledged to dismiss the SEC chair on his first day in office, and some cryptocurrency supporters in Vice President Kamala Harris’ circle have also shown support for his removal under a potential new administration.
Gensler frequently faces criticism from the cryptocurrency industry and certain lawmakers for his “regulation by enforcement” approach, which focuses on enforcement actions rather than providing clear guidance. Critics argue that this approach creates uncertainty and hampers innovation, leaving companies susceptible to legal action without clear compliance guidelines. However, Gensler defends the SEC’s position, asserting that existing securities laws cover the majority of digital assets and that crypto companies must adhere to these established rules to safeguard investors.
Appointed by President Joe Biden in 2021, Gensler addressed the challenges of working in an environment of changing political leadership, stating:
“Traditionally, presidents decide who chairs the SEC. That’s a vital aspect of democracy.”
