Gary Gensler Takes Potentially Final Swing at Crypto as SEC Exit Looms

Gary Gensler has taken another swing at the crypto industry, which might be one of his last, as he steps down from his role as the U.S. Securities and Exchange Commission (SEC) chairman later this month.

Gensler Officially Announces SEC Resignation, Crypto Rejoices

Gary Gensler is stepping down from the SEC on Jan 20, 2025, aligning with Trump’s inauguration

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In a recent interview with Bloomberg TV, Gensler doubled down on his criticism of the cryptocurrency industry, saying it is “rife with bad actors,” despite accounting for less than 1% of the US financial markets. “It’s a field that was built up around noncompliance,” he said.

Reflecting on his tenure, Gensler expressed pride in the agency's enforcement efforts within the crypto industry, highlighting the foundation laid by his predecessor, Jay Clayton, who led the charge on 80 crypto-related enforcement actions between 2017 and 2020.

Under Gensler’s leadership, the SEC has carried out approximately 100 enforcement actions over the past four years.

“I’ve never seen a field that is so wrapped up in sentiment and not so much about fundamentals,” Gensler said. “Of these 10,000 to 15,000 projects, many of them will not survive. They’re like venture capital investments. They’re not going to survive.”

“Everything in the markets trades on a mixture of fundamentals and sentiment. I’ve never seen a field that’s so much wrapped up in sentiment, and so little on fundamentals! It’s a field that’s built up around noncompliance,” he added.

“If you’re not willing to be attacked, you can’t go into the public square and debate policy,” he said, quoting Hillary Clinton.  

He also said he was not too worried about the industry due to its lack of appeal. “I think the public is probably aware of this,” he said of crypto risks. “And less than 10% of the public invests in this field.”

Aligning with the inauguration of President-elect Donald Trump, Gensler will step down as SEC Chair on 20 January 2025.

Making the announcement on X back in November following the US election, Gensler said "It has been an honor of a lifetime to serve w/ them on behalf of everyday Americans & ensure that our capital mkts remain the best in the world."

He also praised President Joe Biden at the time for "entrusting" him with the "incredible responsibility" and that the SEC has met their "mission" and "enforced the law w/o fear or favor.'"

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