Donald Trump’s victory in the U.S. presidential election last November has brought significant optimism to cryptocurrency investors and even triggered a rise in bitcoin’s price. However, for outgoing SEC Chairman Gary Gensler, the commission must intensify its regulation of crypto assets, particularly regarding altcoins and market intermediaries, as he stated in an interview with Bloomberg.
The president-elect has nominated Paul Atkins to be the new SEC Chairman starting January 20, 2025. During the announcement, Trump described his pick as “a proven leader in favor of common-sense regulations” and someone who “believes in the promise of strong and innovative capital markets that address the needs of investors and provide capital to make our economy the best in the world.”
These statements have further fueled speculation that the Trump administration will adopt a more lenient stance on market regulations.
With less than two weeks left in his position, Gensler emphasized the need for continued regulation, especially regarding crypto assets. The outgoing chairman, known for the number of sanctions during his tenure, stated that retail investors still do not receive adequate disclosures or information from digital asset companies.
Gensler pointed out that his predecessor, Jay Clayton, who led the agency during Trump’s first administration, brought approximately 80 cryptocurrency-related cases, while under Gensler’s leadership, around 100 cases were filed.
While the SEC under Clayton focused on actions against companies issuing tokens the agency considered securities, Gensler often targeted market intermediaries that violated securities laws related to registration and disclosure, as noted by AdvisorHub.
The SEC has achieved several court victories—along with defeats—in its position that companies are bypassing registration and disclosure requirements under Gensler’s leadership.
“I’ve never seen a sector so tied to sentiment and so detached from fundamentals,” Gensler said, adding that he believes many cryptocurrency projects will not survive.
Gensler announced in November his plans to step down as SEC Chairman on January 20, when Trump takes office. In early December, the president-elect named Atkins as his replacement.
The nominee has expressed support for digital assets, bolstering bitcoin’s rise following Trump’s announcement. Just one hour after the news, the cryptocurrency had increased by 1.25%, surpassing the $97,000 threshold.
