In a Jan. 14 interview with CNBC’s Andrew Ross Sorkin on Squawk Box, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler stated that crypto interest groups and their financial influence did not significantly impact the outcome of the 2024 presidential election. With President-elect Donald Trump preparing to take office, Gensler remarked, “I think this election, though as you point out, there was money raised from the crypto field, I don’t think that’s what this election was about.”
Gensler’s comments come just six days before his scheduled departure from the SEC, coinciding with Trump’s inauguration. Reflecting on his time leading the regulatory body, Gensler emphasized investor protection and enforcement actions taken against the crypto industry.
SEC Crackdown on Crypto Under Gensler
During his tenure, Gensler’s SEC pursued numerous enforcement actions against major crypto firms, including Coinbase, Ripple Labs, and Binance. The regulatory approach often drew criticism from industry leaders, who accused the SEC of failing to provide clear regulatory guidelines for digital asset firms.
“This field, the crypto field, a highly speculative field, has not been compliant with various laws, whether it’s anti-money laundering laws, sanctions laws, or in our case, securities laws,” Gensler asserted during the interview.
Ripple CEO Brad Garlinghouse, in a December interview on *60 Minutes*, echoed the industry’s frustrations. He attributed the rise of crypto political action committee (PAC) Fairshake to Gensler’s leadership, suggesting the PAC’s pro-crypto advocacy was a direct response to the SEC’s enforcement strategies. Despite its efforts, Federal Election Commission records show Fairshake made no contributions to Trump’s campaign, focusing instead on congressional races.
SEC Leadership Transition Amid Industry Uncertainty
Trump has announced his intent to nominate former SEC commissioner Paul Atkins as Gensler’s replacement. Atkins, known for his pro-market stance, is expected to steer the SEC in a different direction, though a Senate hearing to confirm his nomination has yet to be scheduled.
Meanwhile, legal battles between the SEC and crypto firms continue to unfold. Coinbase, for instance, is challenging the SEC’s policies in appellate court while also pursuing Freedom of Information Act requests to uncover evidence of alleged government efforts to “debank” crypto firms. Additionally, Ripple’s legal dispute with the SEC remains active, with both parties appealing an August ruling that found Ripple liable for $125 million.
Other entities, like Mango DAO, have opted for settlements with the SEC over alleged securities law violations, signaling varied approaches within the industry to address regulatory challenges.
