Former President Donald Trump wants to fire him on the first day he takes office after winning U.S. Elections. Bradley Tusk, the CEO of USK Venture, recently called him the “the single worst regulator in crypto”. He remains the most hated person on planet Crypto: he is Gary Gensler, the chairman of U.S. Securities and Exchange Commission (SEC).
Gensler, a former Goldman Sachs partner and MIT professor, took the helm of the SEC in 2021 with a reputation as a tough regulator, after he was nominated by President Joe Biden. Initially, the community thought he might be a perfect candidate for SEC chairman and be sympathetic towards the crypto industry because of his traditional finance background. However, his offensive take on crypto has put him at odds with crypto enthusiasts and entrepreneurs.
Since his appointment in February 2021, Gensler has become a polarizing figure in the crypto community, with his actions and policies drawing fierce criticism. When someone visits his X account and looks at the comments, you’ll see that it’s filled with hate.
Gensler today looks like the antagonist of the crypto industry. Not only does the crypto community but figures like former President Donald Trump doesn’t align with Gary’s stance on the crypto industry. Now, crypto enthusiasts and entrepreneurs are calling for his resignation as the SEC chairman.
Friction Between Crypto Community & Gary Gensler
The period between 2022 and 2023 saw escalating tensions between Gensler and the crypto community. One of the most significant points of contention was the SEC’s approach to regulation through enforcement rather than clear rulemaking.
Since Gary was confirmed as the SEC chair by U.S. Senate in 2021 the number of crypto-related enforcement cases has increased to a 10-year high as per Cornerstone Research.
According to the official report released by Cornerstone Research SEC brought 46 enforcement actions against crypto firms in 2023 double that of 2021 and highest since 2013. Moreover, the SEC enforced $281 million in monetary penalties for settlements and tripled the count of administrative proceedings from 2022.
Source: Cornerstone Research
Since Gary was confirmed as the SEC chair by U.S. Senate in 2021 the number of crypto-related enforcement cases has increased to a 10-year high as per Cornerstone Research. Under the leadership of Gary Genser, Commission actions on the crypto industry advanced by 50% in 2022 and 53% in 2023.
This aggressive stance continued later on, with high-profile cases against major players like Binance, Ripple, Kraken and Coinbase. On this Coinbase claimed that before the Commission took action against them they met the Commission officials more than 30 times but never got feedback.
Most of the top players from the industry argued that this approach created an atmosphere of uncertainty, stifling innovation and forcing companies to operate in a regulatory grey area. Many accused Gensler of overstepping the SEC’s authority and applying outdated securities laws to new technology without proper guidance.
Unpopular Policies of Gary in Crypto
There are several of Gensler’s policies and statements have drawn criticism from the crypto community. He was criticized badly over repeatedly stating that most cryptocurrencies should be classified as securities. This stance adds a layer of difficulty to many crypto projects and exchanges in their growth.
The SEC’s actions against crypto lending platforms by calling them to provide unregistered securities are also criticized by the community. Additionally, despite approving Bitcoin futures ETFs, consistently rejecting applications for spot Bitcoin ETFs gave frustration to many crypto enthusiasts at that time.
While Gensler often cites investor protection as a primary motivation, many in the crypto community argue that his policies limit investor choices and opportunities.
Why Trump Said He Will Fire Gary Gensler?
At the Bitcoin 2024 conference, Former U.S. President Donald Trump said he would fire SEC chairman Gary Gensler on day one in office. Everybody knows that Trump is a crypto supporter and he aggressively criticized Gensler’s approach towards crypto.
According to a report by Coincub, the United States dropped from sixth to eighth place in global crypto adoption rankings in 2023, partly due to regulatory uncertainty. Trump has promised the community to make Bitcoin great again by implementing more favorable regulations and providing clearer guidelines for the industry.
Trump’s stance has resonated with many in the crypto community who believe that Gensler’s strict approach to crypto restricts the industry from innovation and growth in the sector. By promising to remove Gensler and appoint a more crypto-friendly SEC chair, Trump aims to restore confidence and foster a more supportive environment for cryptocurrency development in the United States.
Final Thoughts
The animosity between Gary Gensler and the crypto community reflects a fundamental tension between regulation and crypto space. While Gensler believes that his strict stance on crypto is important to protect investors and market integrity but in reality it is also a big hurdle for the industry growth. Critics believe that his approach is heavy-handed and fails to appreciate the unique characteristics of blockchain technology.
Also Read: I will fire Gary Gensler on Day 1: Trump at Bitcoin Nashville 2024
