Gary Gensler, the fearless leader of the United States Securities and Exchange Commission (SEC), is sticking to his guns when it comes to crypto assets. Even as whispers swirl that he might soon be handing over the reins to President-elect Donald Trump, Gensler remains steadfast in his mission to regulate the wild world of crypto.
In a spirited speech in the Big Apple on November 14, Gensler stated that not every crypto asset is a security. He reminded the crowd that both he and former SEC head honcho Jay Clayton have always declared Bitcoin to be in the clear. “Bitcoin's not a security,” he said, adding that the Commission has never treated it as one. However, when it comes to the rest of the crypto zoo, Gensler's stance is firm: most of these digital doodads are securities, even if there's no official stamp from the legal or congressional crowd.
Gensler's been a bit like a broken record, harping on about two main points that justify the SEC's flurry of lawsuits over recent years. First, any party offering or selling securities needs to register and spill the beans to the public. Second, the middlemen—those broker-dealers, exchanges, and clearinghouses—need to play by the rules and be properly regulated.
Crypto industry bigwigs, however, have been quick to point out that registering is no walk in the park since their firms aren't exactly securities brokers. Gensler, unfazed, insists crypto has left a trail of investor tears over the years, continually pointing fingers at “illicit activities” and the fact that most crypto assets have yet to showcase sustainable real-world use.
In a dramatic twist, 18 U.S. states have banded together to file a lawsuit against Gensler, accusing the SEC of stepping way over the line in its crackdown on the crypto scene. These states are crying foul play, calling it an unconstitutional overreach under Gensler's watchful eye.
As Gensler wrapped up, he dropped a hint that his SEC days might be numbered, expressing pride in his colleagues who are working hard to keep American families safe on the financial highways. Officially, his term isn't up until June 2026, but the crypto community is eagerly hoping that Trump will make good on his promise to give Gensler the boot on day one if he takes office.
Meanwhile, Ripple's XRP took the news and ran, soaring 18% to hit a high of $0.83. Investors are buzzing with optimism that the long, drawn-out legal tango with the SEC might finally be nearing its end. Hold onto your hats, folks, because the crypto rollercoaster is still in full swing!
