In summary
- Gary Gensler highlighted his legacy at the SEC amid speculation he may resign following Trump’s election.
- His speech reaffirmed his position on cryptocurrencies as securities and the risks for investors.
- Republicans have suggested possible successors, such as Hester Peirce or Robinhood’s chief lawyer.
Securities and Exchange Commission (SEC) Chairman Gary Gensler said he was “proud to serve” the agency during a speech, amid widespread speculation about his possible resignation.
“I have been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the financial highways,” he said at the 56th Annual Institute on Securities Regulation yesterday at the Institute of Legal Practice in New York City.
To be clear: Gensler has not officially announced his resignation as of this writing. However, Gensler’s use of the past tense regarding his work comes after President-Elect Donald Trump promised to “fire Gary Gensler on the first day (of his term)” during a Bitcoin conference in Nashville in July.
Markus Thielen, CEO of crypto research firm 10x Research, told Decrypt earlier this year that SEC chairs have historically resigned after the election of a new administration, such as at the start of the Obama or Biden administrations. .
Gensler’s speech also touched on his legacy during his three years at the SEC, including how he has applied his regulatory hand to the crypto industry. He also took the opportunity during his speech to reiterate his long-held stance that many cryptocurrencies are securities, not commodities, and the potential for harm to the industry.
In particular, he pointed to the SEC’s multi-year battle with Cryptocurrency firm Ripple as an example of a company that “wasn’t following the common sense rules of the road.”
“This is a field where there has been significant harm to investors over the years,” he said. “Furthermore, aside from speculative investment and potential use for illicit activities, the vast majority of cryptoassets have yet to demonstrate sustainable use cases.”
During his tenure at the SEC, Gensler also pursued other cases against some of the biggest names in the cryptocurrency world, including cryptocurrency exchanges Coinbase and Uniswap, and software giant Consensys.
The president’s speech comes as Gensler faces a lawsuit from 18 states and their Republican attorneys general, accusing the agency of a “regulatory takeover” that defied its standard procedure.
Gensler’s term is scheduled to last through 2026, and a president cannot remove a commissioner of an executive agency unless they demonstrate “inefficiency, dereliction of duty, or misconduct in office.”
However, several commentators have already proposed possible replacements for Gensler.
An anonymous former SEC official who spoke to Politico said Robinhood Chief Legal Officer Gallagher would be a “natural choice.”
John Reed Stark, a law professor and former agency employee, has said that current SEC Commissioner Hester Peirce could also be a likely choice.
Edited by Stacy Elliott.
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