Nazia Saeed
- Gensler defends crypto enforcement record, emphasizing investor protection and highlighting fraud cases like FTX during his tenure.
- SEC under Trump introduces regulatory changes, including clarifying that most tokens are not securities and streamlining cryptocurrency ETF approvals.
- Proposed shift in corporate reporting could move from quarterly to biannual filings, raising concerns over potential market volatility.
In one of his first media appearances since leaving the US Securities and Exchange Commission (SEC) in January, former Chair Gary Gensler defended his approach to cryptocurrency regulation, emphasizing investor protection and market integrity.
Speaking on CNBC with Sara Eisen, Gensler responded to the reversal of several policies under current SEC Chair Paul Atkins, noting that many investors had celebrated his departure. He stated, We were consistently trying to ensure for investor protection. And in the midst of it, we had a lot of fraudsters: Look at Sam Bankman-Fried, and he wasn’t alone.” Gensler described crypto as a highly speculative, very risky asset and expressed pride in his enforcement actions during his four-year tenure.
Gensler stepped down on January 20, 2025, the day President Donald Trump took office. During his campaign, Trump had pledged to remove Gensler “on day one” if elected. After leaving the SEC, Gensler returned to teaching at MIT Sloan School of Management.
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Trump and SEC propose major policy shifts
Since Trump’s inauguration, the SEC has taken a markedly different stance toward crypto and corporate regulation. Acting Chair Mark Uyeda dropped several ongoing lawsuits and investigations into high-profile crypto companies, and the agency under Trump has clarified that “very few tokens are securities” while streamlining cryptocurrency ETF approval processes.
In addition to these regulatory changes, Trump proposed a major policy overhaul regarding corporate reporting, suggesting that companies move from quarterly filings to a twice-yearly schedule. On Friday, Atkins said the SEC would “consider that and move forward” with a potential rule change.
Gensler cautioned that reducing reporting frequency could make markets more volatile. For me, I think transparency helps markets. If we go to only twice a year instead of four times a year reporting, the markets will be a bit more volatile, he said while talking to CBNC urging investors to voice their opinions on the proposed shift.
