The U.S. crypto industry may see relief as a shift in SEC leadership could curb aggressive enforcement under Gary Gensler. For years, the SEC has viewed most digital assets as unregistered securities under outdated financial laws, resulting in a stringent crackdown on major crypto firms. However, Bloomberg reports that the recent Republican electoral success may lead to a regulatory rollback.
Trump’s Promise to End SEC’s Crypto War
At the Bitcoin Nashville conference in July, President Trump vowed to remove Gensler “on day one” if elected. A new SEC chair is expected to bring in revised regulations, allowing crypto companies to register and comply without facing immediate lawsuits. According to Jack Inglis, CEO of the Alternative Investment Management Association, this shift under Trump and a new Congress could offer a “much more constructive” approach to crypto regulation.
New Leadership Could Foster a Pro-Crypto Environment
A change at the SEC could mean a reduced focus on lawsuits and enforcement, creating a friendlier regulatory environment for crypto companies. Nate Geraci, president of ETF Store, even joked about Gensler potentially joining a crypto firm post-Trump’s inauguration. Meanwhile, former SEC enforcement director William McLucas criticized Gensler’s reliance on the Howey Test, arguing it fails to adapt to the unique nature of crypto assets.
Coinbase’s chief legal officer, Paul Grewal, also anticipates “significant changes” under a Trump-appointed SEC chair. He believes the new administration will take a “fresh look” at ongoing cases, focusing on apparent scams while distinguishing legitimate companies. Chris Iacovella, President of the American Securities Association, remarked to Bloomberg that the recent election reflects the public desire for a new direction in crypto policy, urging Gensler to step down.
Signs of a Shift in the Crypto Market
During Gensler’s tenure, leading crypto companies like Ripple, Coinbase, Binance, and Kraken faced intense scrutiny, with lawsuits primarily focused on the SEC’s view of digital assets as securities contracts. As anticipation builds for regulatory changes, crypto markets are already reacting, with Bitcoin reaching a five-month high.
Experts and market players are watching closely to see how these shifts in the SEC’s leadership and approach may finally end what has been perceived as a “war on crypto.” The crypto community is hopeful that, with Gensler’s exit, new regulations will emerge that support innovation while protecting investors.
