Gary Gensler, the previous chairman of the U.S. Securities and Exchange Commission (SEC), recently spoke out in one of his rare media appearances since stepping down in January. He expressed no regrets about his firm approach toward cryptocurrency regulation during his tenure at the SEC.
In a detailed interview with CNBC’s Sara Eisen, Gensler addressed criticisms following the agency’s shift in policy under current chair Paul Atkins. Some investors welcomed the policy reversals, but Gensler reaffirmed his belief that tight regulation remains crucial.
Gensler emphasized pride in his regulatory actions, stating they were essential for protecting investors. He described cryptocurrencies as “highly speculative” and “very risky” assets, underscoring the need for stringent oversight.
Reflecting on enforcement efforts, Gensler mentioned that the SEC faced significant challenges from fraudulent crypto entities, referencing controversies like those involving Sam Bankman-Fried and others.
After leaving the SEC coinciding with the inauguration of President Donald Trump, who had criticized Gensler’s approach, he resumed work as an academic at the MIT Sloan School of Management.
Recent SEC Policy Developments
During Gensler’s leadership, the SEC took a strict stance amid a challenging crypto market, including fallout from the FTX crisis and widespread bankruptcies. However, the agency’s direction has since changed considerably under acting chair Mark Uyeda and confirmed chair Paul Atkins.
The agency has dropped several lawsuits against crypto firms and adopted a more lenient view, with some officials stating that very few crypto tokens qualify as securities. They also streamlined procedures for approving cryptocurrency ETFs.
One of the most significant proposed changes involves reconsidering the SEC’s requirements for quarterly financial reports. Former President Trump advocated for shifting from quarterly to biannual reporting to reduce burdens on companies.
Paul Atkins acknowledged plans to evaluate and potentially implement this change. Gensler warned that reducing transparency by halving report frequency could increase market volatility. He encouraged investors to voice opinions to preserve current disclosure standards.
These developments highlight a major pivot in U.S. crypto regulation, presenting both opportunities and uncertainties for investors and market participants.
