Gary Gensler, the former head of the US Securities and Exchange Commission (SEC), recently defended his tough stance on cryptocurrencies. He said he’s proud of his actions while at the SEC, arguing that most cryptocurrencies, except Bitcoin, lack solid foundations.
Gensler’s Actions: Protecting Investors or Stifling Innovation?
Gensler pushed back against claims that his approach stifled innovation. He insisted his focus was on protecting everyday investors. He pointed out that many cryptocurrencies are driven by hype rather than real business value, estimating there are thousands of such tokens. He reiterated his belief that many of these should be regulated as securities. This sparked another round of online debate, with some praising his firm stance and others criticizing it for hindering innovation.
A Mixed Legacy: Bitcoin ETFs and a Shift in Enforcement
One notable achievement during Gensler’s tenure was the approval of spot Bitcoin exchange-traded products (ETPs). This was seen as a significant market milestone, influenced by both legal pressure and internal shifts within the SEC.
However, things changed after Paul Atkins took over as SEC chair. The new leadership has scaled back several high-profile cases started under Gensler. Lawsuits against major exchanges like Binance, Coinbase, and Kraken have been dropped or settled, and the long-running fight with Ripple is over. This shift in approach is a big deal for the crypto market.
Mixed Reactions
The internet exploded with reactions to Gensler’s interview. Some prominent crypto figures slammed his comments, while others focused on the need for clear rules and investor protection rather than personal attacks.