Gary Gensler, the securities and exchange commission chief who has been forceful in his oversight of cryptocurrencies and other markets for financial instruments, will step down on January 20th.
Mr. Gensler advocated policies he claimed would protect investors, but the industry and many Republicans opposed what they regarded as overreach.
During his campaign, President-elect Donald Trump promised to remove Mr. Gensler. However, on Thursday (November 21, 2024), Gensler declared that he will be stepping down from his position on the day Trump is inaugurated.
Bitcoin has risen by 40% since Trump’s election. It reached fresh highs on Thursday (November 21, 2024) and was approaching $100,000. Bitcoin surged further higher after Gensler’s resignation was revealed.
Table of Contents
Gary Gensler opinion on the emergence of cryptocurrencies
Gensler’s opinion on the emergence of cryptocurrencies was encapsulated in a speech he gave during his first year as chairman in 2021, in which he referred to the industry as “the Wild West.”
“This asset class is rife with fraudulent activities, scams, and abuse in certain applications,” he said during his keynote speech at the Aspen Security Forum. “There’s a lot of hype and spin surrounding how crypto assets work. Investors frequently lack access to thorough, impartial, and comprehensive information.
Under Gensler, the SEC prosecuted crypto industry players for fraud, wash trading, and other violations, most recently charging three companies claiming to be market makers, as well as nine individuals, with attempting to manipulate various crypto markets.
However, under Gensler, access to cryptocurrency increased. The SEC approved exchange-traded funds that track bitcoin’s spot price in January. Investors could gain easier access to bitcoin by purchasing it through ETFs rather than directly.
Gensler admitted, however, that the SEC has previously declined comparable petitions for such ETFs, including Grayscale Bitcoin Trust, which was among the first to be approved.
“Circumstances, however, have shifted,” Gensler said, citing a ruling by the United States Court of Appeals for the District of Columbia that found the SEC failed to fully explain its reasoning in rejecting Grayscale’s plan.
Even then, Gensler made it clear that it did not embrace bitcoin’s virtues. He emphasized that ETFs that hold precious metals track prices of things with “consumer and industrial users,” whereas bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity such as ransomware, money laundering, sanction evasion, and terrorist financing.
Gary Gensler reign was tested early on when the meme stock craze erupted in early 2021
Gensler’s reign was tested early on when the meme stock craze erupted in early 2021, shocking the financial industry. Earlier this year, the SEC, led by Gensler, urged Wall Street to shorten the time it takes for stock deals to settle, one of the areas where the commission’s staff recommended improvements in response to GameStop, one of the first meme stocks.
In May 2024, new laws required broker-dealers to fully settle their trades within one business day of the trade date, down from the previous two.
Many of the SEC’s initiatives under Gensler’s leadership have been criticized as being too burdensome.
The financial industry, for example, is opposed to a proposal that would require some advisers and corporations to disclose more information about their environmental, social, and governance policies, or ESG. Critics argue that the idea is unnecessarily complex, increasing the danger of investor confusion, and placing needless burdens and costs on funds.
On Thursday maintained the SEC’s record under his leadership.
“The staff and the Commission are primarily motivated by an objective focused on defending investors, facilitating capital formation, and ensuring that the financial markets work for investors and issuers alike,” Gensler said during her remarks before the hearing. “The staff comprises true public servants.”
Mr. Gensler previously chaired the United States Commodity Futures Trading Commission, where he oversaw the Obama administration’s restructuring of the $400 trillion swaps market. He was also a significant advisor to U.S. Senator Paul Sarbanes on the Sarbanes-Oxley Act (2002), and he was also undersecretary of the Treasury for Domestic Finance and assistant secretary of the Treasury from 1997 to 2001.
you join our tazatimesnews Telegram Channel
you join our whatsapp channel
Next News Read – UGC NET December 2024 registration starts: Two more subjects have been added; check the complete details.
Next News Read – UGC NET : How Should I Prepare for UGC NET 2025?
