Gary Gensler, chair of the US Securities and Exchange Commission (SEC), stated that the 2024 presidential election outcome was not significantly influenced by money from crypto interest groups. Gensler, who is set to leave office in six days, made these remarks during a January 14 interview with CNBC’s Andrew Ross Sorkin on Squawk Box.
According to Gensler, while the crypto industry contributed to political campaigns, it didn’t play a decisive role in President-elect Donald Trump’s victory. Instead, he reiterated his long-standing focus on enforcing compliance within the crypto space, emphasizing violations of securities, anti-money laundering, and sanctions laws during his tenure.
SEC’s Crypto Crackdown Under Gensler
During Gensler’s leadership, the SEC took several enforcement actions against major crypto firms, including Coinbase, Ripple Labs, and Binance, for alleged violations of US securities laws. Despite these actions, critics in the crypto industry have accused the SEC of failing to provide clear regulatory guidance for digital asset firms, creating uncertainty about how companies can operate within the law.
Ripple CEO Brad Garlinghouse criticized Gensler in a December interview on 60 Minutes, saying that political efforts like the pro-crypto PAC Fairshake likely emerged in response to Gensler’s aggressive enforcement strategies. While Fairshake invested heavily in supporting pro-crypto candidates in congressional races, Federal Election Commission filings show no evidence of funding for Trump’s campaign.
Changes Ahead for the SEC
President-elect Trump announced in December his intention to nominate former SEC commissioner Paul Atkins to replace Gensler as SEC chair. However, the Senate has not yet scheduled a hearing to confirm Atkins’ nomination. Gensler’s departure coincides with Trump’s inauguration, marking a significant transition for the SEC’s leadership amid ongoing legal battles with crypto firms.
Coinbase remains locked in multiple legal disputes with the SEC, including challenges to court rulings that favor the regulator. The exchange has also filed Freedom of Information Act (FOIA) requests, alleging that the US government coordinated efforts to restrict access to banking for crypto firms.
In Ripple’s case, a court ruled in August that the company owed $125 million, but both Ripple and the SEC have since filed appeals. Other cases, such as Mango DAO, have resulted in settlements with the regulator over allegations of securities law violations.
As Gensler prepares to leave the SEC, his legacy is marked by a crackdown on the crypto industry and ongoing criticisms over the lack of clear regulatory frameworks. With a new SEC chair on the horizon, the crypto community is watching closely for signs of potential shifts in enforcement priorities and regulatory clarity.
