Gary Gensler Pushes for Crypto Firm Compliance Standards

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler reiterated his position on crypto regulations, supporting transparency and compliance.

SEC Chair Gary Gensler expressed his support for crypto regulations that prioritize transparency and compliance during the Practicing Law Institute’s 56th Annual Institute on Securities Regulation on November 14.

Gensler highlighted the need for crypto firms to register and report relevant information to protect investors.

He further emphasized his classification of approximately 10,000 tokens as securities, which should be subject to securities laws.

Gensler highlighted the approval of Bitcoin (BTC) exchange-traded funds and futures investment products by the SEC during his tenure.

However, he noted that many crypto firms have operated in violation of compliance standards, which he described as “common sense rules.”

Moreover, Gensler pointed out that while many crypto assets are speculative and their sustainable uses are yet to be realized, some do have clear uses.

Following Donald Trump’s election victory, there has been speculation regarding potential changes in the SEC’s leadership and approach to crypto regulation.

While the SEC has generally adopted a softer stance on crypto, Gensler’s term is set to expire in June 2026.

Despite Trump’s promise to dismiss Gensler upon taking office, experts maintain that removing Gensler without due cause may be challenging.

In response to Trump’s victory, crypto advocates have rallied behind his promises to reduce regulatory oversight.

Specifically, they have called for protecting Bitcoin’s market from foreign influence, addressing concerns about central bank digital currencies, and potentially reconsidering crypto regulation and enforcement.

However, it remains unclear how Trump will fulfill these promises without Senate approval for his appointees or through a recess appointment.

Former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo addressed the recent speculation by announcing that he will not pursue the Gensler role or any position at the U.S. Treasury.

Giancarlo’s announcement leaves other candidates in the running, with industry members awaiting Trump’s selection for SEC leadership.

According to an X post, Giancarlo’s announcement will leave other candidates in the running.

Robinhood’s Chief Legal Officer, Dan Gallagher, has been a leading candidate for the role, but his potential appointment has elicited mixed reactions.

While Gallagher is known for his crypto advocacy, some crypto advocates express concern that his priorities may align more closely with traditional banking interests than the crypto industry.

On social media, partner at Cinneamhain Ventures Adam Cochran questioned whether Gallagher embodies the aspirations of crypto.