Gary Gensler remains firm on his cryptocurrency regulatory stance after leaving office
Former SEC Chairman Gary Gensler has rarely made public statements since leaving office in January of this year, but in a recent interview with CNBC, he reiterated his tough enforcement stance on the cryptocurrency sector taken during his tenure, causing a public uproar.
He emphasized that cryptocurrencies are "highly speculative and extremely risky assets" and firmly defended his regulatory decisions on digital assets during his term. He also cited significant fraud cases like that of Sam Bankman-Fried as evidence of the necessity and legitimacy of strict regulation.
In stark contrast, under the new leadership appointed by Trump, the SEC is quickly reversing the regulatory path of the Gensler era.
SEC Acting Chairman Mark Uyeda has canceled several lawsuits and investigations against cryptocurrency companies, some of which were also withdrawn progressively under the new administration's directives.
Moreover, newly appointed SEC Chairman Paul Atkins has previously stated that the vast majority of tokens do not qualify as securities and has pushed for a streamlined process for cryptocurrency ETF listings, significantly reducing the compliance burden on the industry.
A pivotal policy shift also includes Trump's recent proposal to abolish the quarterly reporting system for publicly listed companies, changing it to a semi-annual reporting system. Atkins responded that the SEC would actively consider this change, emphasizing that the appropriate pace should be "determined by the market."
Gensler, however, has reservations about the annual reporting reform, believing that reducing the frequency of disclosures could exacerbate market volatility and harm transparency.
Despite strong criticism from the cryptocurrency industry regarding Gensler's "enforcement regulation" model, with some cases already terminated by the new SEC, he still insists that the policies during his tenure were correct and necessary.
As #SEC rapidly shifts to a loose policy under Trump's new administration, the era of "enforcement regulation" represented by Gensler may have come to an end, but his policy legacy continues to impact the compliance debate and developmental path within the cryptocurrency market. Balancing regulatory requirements and promoting innovation remains a core issue that the SEC urgently needs to address.