US SEC Chair Gary Gensler Says Crypto Still Needs Tougher Oversight

Outgoing SEC Chair Gary Gensler emphasizes strict crypto regulation, highlighting the agency's 100 enforcement actions during his tenure.
US SEC Chair Gary Gensler Says Crypto Still Needs Tougher Oversight

Highlights

  • Gary Gensler led 100+ SEC crypto actions, stressing investor protection.
  • US SEC under Gensler labeled most crypto as securities, urging compliance.
  • Gensler's tenure saw legal victories and industry pushback on regulation.

Gary Gensler, the outgoing Chair of the U.S. Securities and Exchange Commission (SEC), reaffirmed his stance on the need for stricter regulation of the cryptocurrency industry. Speaking during an interview with Bloomberg TV on Wednesday, Gensler described the crypto market as “rife with bad actors” and called for enhanced oversight to protect investors.

Gensler, who has led the SEC since 2021, emphasized the importance of enforcing existing laws and ensuring compliance among crypto firms. His tenure has been marked by vigorous enforcement efforts, including legal actions against major players like Coinbase and Ripple. He is set to step down on January 20, the day President-elect Donald Trump is sworn in.

Advertisement
Advertisement

SEC Enforcement Actions Under Gary Gensler’s Leadership

While at the US SEC, Gary Gensler aimed at dealing with misconduct in cryptocurrencies market which he described as being ‘Emotive’ rather than being based on fundamental analysis. He noted that the agency had pursued around 100 crypto-related enforcement actions during his four years in the post, adding to the 80 actions taken by his predecessor, Jay Clayton.

The SEC’s focus under Gensler has been on companies and other entities that are alleged to have broken securities laws. Some of them were against Coinbase Global Inc. for allegedly helping in trading unregistered securities and lawsuits against Ripple Labs concerning XRP. Some of these cases ended with the SEC winning the court cases while others were controversial and even led to legal battles and backlash from the cryptocurrency community.

‘Everyday investors deserve better disclosures and protections,’ Gensler said in the Bloomberg interview, restating his view that most digital assets are securities. He urged the crypto firms to come clean and report to the SEC and operate within the prevailing legal framework.

Advertisement
Advertisement

Criticism From the Crypto Industry

US SEC Chair Gary Gensler’s approach has elicited a lot of backlash from the cryptocurrency industry. A number of participants noted that this approach of the SEC leads to over-enforcement and deters innovation. They also argue that the current legal frameworks are ineffective in the digital assets space, which puts compliance out of reach for crypto companies.

Coinbase, which has been on the receiving end of the SEC’s actions, obtained a recent legal reprieve when a court permitted it to proceed with an interlocutory appeal in its lawsuit against the agency. Another high-profile company, Ripple Labs, has also faced several legal cases with the SEC with the latter expected to file opening brief related to appeals against Ripple and its executives before deadline

Gensler has come to the defence of the SEC, saying that the agency had no choice but to act in order to protect investors and preserve the market’s integrity. “Out of these 10,000 to 15,000 crypto projects, many will not survive,” he said, comparing the sector to venture capital investments which have a high failure rate.

Advertisement
Advertisement

Transition in Leadership at the US SEC

With US SEC Chair Gary Gensler set to depart, the agency is likely to take on a different direction. Donald Trump is expected to appoint Paul Atkins, a former commissioner of the Securities and Exchange Commission, as the head of the agency. Atkins is expected to be less hostile towards the industry and may decrease the number of actions against cryptocurrency companies.

During Atkins tenure, the SEC could shift its attention toward promoting innovation and growth while ensuring a proper level of supervision. This move could be a radical change from the Gensler period, who focused on going after firms that it accused of violating the securities laws.

Despite this, Gensler said that he is happy with what has been accomplished at the SEC under his leadership, although he noted that there is still more work to be done to address the rapidly developing digital asset markets.

Advertisement
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.