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November 22, 2024 – 10:21
The president of the financial markets regulatory authority in the United States (SEC), Gary Gensler, will leave his position early on January 20, the day of the inauguration of Donald Trump, who wanted to remove him from office.
The SEC issued a statement this Thursday to deliver this news, which boosted bitcoin. Gensler waged a tough campaign during his tenure to try to regulate the cryptocurrency sector.
In the minutes following the announcement, the world’s most popular cryptocurrency hit a new record, at 99,022.69 per dollar.
During his campaign, President-elect Trump announced his intention to replace Gensler as soon as he returned to the White House.
In the absence of a clear regulatory framework, this former banker took a tough approach against digital currencies, which he wanted to regulate like traditional assets.
The SEC thus brought three of the largest crypto exchange platforms to justice: Binance, Coinbase and Kraken, in addition to some start-ups.
But after some judicial setbacks, it authorized the entry into the market of new products indexed to bitcoin. These ETFs (exchange traded funds) allow you to place money that will follow the fluctuation of bitcoin, without directly purchasing this digital currency.
Trump’s willingness to replace Gensler before the end of his term generated a debate among jurists and academics as there was no jurisprudence on the matter.
Appointed by Joe Biden, Gensler would end his five-year term on the SEC board in April 2026.
The number one of the SEC congratulated himself for having applied the law “without favoritism” in the statement in which he announced his resignation.
– The industry celebrates –
But the cryptocurrency industry celebrated his departure in unison.
During Gary Gensler’s mandate, “the SEC put itself in the place of a gendarme and stopped innovation,” lawyer Hailey Lennon, former legal expert at the cryptocurrency exchange platform Coinbase, reacted in X.
“It is a great victory” that should prompt the SEC to “not exceed its prerogatives by imposing punitive rules, stick to administrative law and collaborate with the industry to find solutions,” Kristin Smith, director of the Blockchain Association, commented on the same network. .
Although it is an area of innovation, the world of cryptocurrencies and blockchain, the technology on which digital currencies are based, is also a favorable space for scams, since there is practically no regulation and action can be taken in the anonymity.
In fact, a cryptocurrency company was at the origin of the most important financial scandal since the fall of Bernard Madoff’s scam.
The implosion of FTX in late 2022 led its founder, Sam Bankman-Fried, to 25 years in prison for fraud and conspiracy, when his platform was the second largest in the world for the exchange of cryptoassets.
The number one at Binance, the largest platform in the sector, Changpeng Zhao, pleaded guilty to violating the United States law on money laundering in November 2023, and within the framework of an agreement with the Department of Justice he agreed to resign and was sentenced to four months in prison in April and released in September.
A bill known as FIT21 for the sector was approved in the House of Representatives in May. It is currently being studied by the Senate and plans to hand over control of the sector to another regulator of the financial world, the CFTC, instead of the SEC.
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**Considering the SEC’s recent lawsuits against major crypto exchanges, how might a change in leadership influence the SEC’s approach to enforcement actions within the cryptocurrency industry?**
## World Today News Interview: The Future of Crypto Regulation
**Welcome to World Today News. Today, we’re delving into the recent resignation of SEC Chair Gary Gensler and its implications for the cryptocurrency world. Joining us are two experts: [Guest 1 Name & Credentials], and [Guest 2 Name & Credentials].**
**Section 1: Gensler’s Legacy and the Impact of His Departure**
* **Host:** Mr./Ms. [Guest 1 Name], Gary Gensler took a very active approach to regulating the cryptocurrency market. How do you assess his legacy and what do you think his departure means for the industry moving forward?
* **Host:** Mr./Ms. [Guest 2 Name], the cryptocurrency industry has largely celebrated Gensler’s resignation. What are their primary concerns regarding his regulatory approach, and do you anticipate a shift in regulatory stance with a potential new SEC Chair?
**Section 2: The Debate on Cryptocurrency Regulation**
* **Host:** There has been ongoing debate about the appropriate level of regulation for cryptocurrencies. Mr./Ms. [Guest 1 Name], what do you believe is the ideal balance between fostering innovation and ensuring investor protection in this evolving market?
* **Host:** Mr./Ms. [Guest 2 Name], some argue that the current regulatory ambiguity stifles innovation and drives businesses overseas. Do you agree, and what measures could be implemented to create a more supportive environment for the cryptocurrency industry in the US?
**Section 3: The Future of Cryptocurrency Regulation in the US**
* **Host:** We’ve seen legislative proposals like the FIT21 bill aimed at shifting regulatory oversight of cryptocurrencies. Mr./Ms. [Guest 1 Name], what are your thoughts on this proposed shift from the SEC to the CFTC, and what potential challenges or opportunities might it present?
* **Host:** Mr./Ms. [Guest 2 Name], looking ahead, what key factors will likely shape the future of cryptocurrency regulation in the United States?
**Section 4: Closing Thoughts**
* **Host:** Thank you both for sharing your valuable insights. Do you have any final thoughts on the implications of Gensler’s resignation for the future of the cryptocurrency landscape?
**We hope this interview has shed light on the complex issues surrounding cryptocurrency regulation. For more in-depth analysis and coverage, please visit world-today-news.com.**
