SEC Chair Shifts Tone on Cryptocurrency, Emphasizes Regulatory Compliance and Practical Use Cases

SEC Chair Gary Gensler Turns Pro-Crypto on His Way Out

Outgoing Securities and Exchange Commission (SEC) chair Gary Gensler has surprised the cryptocurrency community by expressing a newfound appreciation for Bitcoin. In an exit interview, Gensler revealed that he believes in the future potential of the digital asset.

During the conversation, Gensler emphasized that Bitcoin is highly speculative and volatile as an asset. However, he noted that over 7 billion people worldwide are interested in trading the digital currency, just as they would with other assets like gold. This could potentially open up new opportunities for the asset.

The SEC chair also highlighted that Bitcoin has demonstrated its use cases, setting it apart from other industry tokens. Furthermore, Gensler clarified that the SEC never viewed Bitcoin as a security and is therefore not bound by disclosure requirements.

Interestingly, Gensler took aim at other digital tokens, stating that they need to comply with domestic security laws before being approved. The chair emphasized the importance of demonstrating use cases and underlying fundamentals for such tokens to be considered.

Gensler also criticized the crypto ecosystem for its lack of compliance with various domestic and international laws, including money laundering and securities laws. He emphasized that the SEC’s primary responsibility is to protect the investing public from market manipulation and fraud.

The outgoing chair reiterated the importance of relevant disclosures being made before exchanges trade tokens on momentum fundamentals. This comes after the SEC announced in November 2024 that Gensler would be stepping down as agency chair, effective January 20.

It remains to be seen how Gensler’s sudden pro-crypto stance will impact the industry moving forward.

Source: www.cryptonewsz.com