Gary Gensler Hints at SEC Resignation, Reiterates Bitcoin "Not a Security"

US Securities and Exchange Commission (SEC) Chair Gary Gensler has teased the industry about his potential resignation in what seems to be a farewell message.

In a speech titled "Car Keys, Football, and Effective Administration" at the Practicing Law Institute and the 56th Annual Institute on Securities Regulation, Gensler discussed SEC topics including markets, governance, accounting, crypto, and even football.

Using football as an analogy, Gensler highlighted the importance of referees, reflecting on the importance of regulators. "As we enjoy football games this fall, imagine what it would be like if the National Football League didn’t have any rules of the road," he said. "Imagine if it didn’t have referees. There would be mayhem on the field and injuries to players.

"Common-sense rules for football not only protect the players, but also build confidence in the integrity of the game for fans. Thus, rules and refs help promote the business of the game. This is just as true for the world of finance. Common-sense rules lower risk and build trust among the participants in the markets."

On the topic of crypto, Gensler emphasized that Bitcoin is not a security. "Not every asset is a security," he said. "Former Chairman Clayton and I have both said that Bitcoin is not a security, and the Commission has never treated Bitcoin as a security."

Gensler went on to stress that crypto firms selling securities publicly need to register and "give proper disclosure to the public" while intermediaries such as broker-dealers, exchanges, and clearinghouses need to be "registered and properly regulated as to conflicts, disclosures, and business conduct."

"This is a field in which over the years there has been significant investor harm," Gensler continued. "Further, aside from speculative investing and possible use for illicit activities, the vast majority of crypto assets have yet to prove out sustainable use cases."

Even more interestingly, and perhaps the highlight of his speech, Gensler hinted at his possible resignation.

“It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world,” he said, closing off with, "I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance."

During his presidential campaign, Donald Trump had pledged to fire Gensler on the first day of his presidency. “On day one, I will fire Gary Gensler,” Trump famously said. Although it's questionable whether the president actually has the power to fire the SEC chair, the mere thought of a Gensler exit inspired palpable excitement.

Dan Gallagher, Paul Atkins, Mark Uyeda, Hester Peirce, and Chris Giancarlo have all been listed as potential Gensler replacements under Trump.

That said, Giancarlo recently declared himself out of the running. “I’ve made clear that I’ve already cleaned up earlier Gary Gensler mess [at the CFTC] and don’t want to have [to] do it again,” Giancarlo, AKA 'Crypto Dad', said on X.