QUICK TAKES
- Gary Gensler is resigning from being the Securities Exchange Commission (SEC) chairman on January 20 (when Trump assumes office).
- Katrina Paglia, chief legal officer at Pantera (a crypto asset manager), foresees the SEC’s current lawsuits on blockchain companies ‘ending quietly.’
- Owing to Trump’s pro-crypto stance and election victory, Bitcoin has been hitting ATH after ATH. It’s getting closer and closer to $100K.
Gary Gensler is to leave the SEC at noon on January 20, 2025 – the same day Trump moves back into the White House.
Trump has threatened to fire the SEC chairman upon assuming the US presidency. Like many other crypto titans, he deems his stringent crypto rules unreasonable and innovation obstructive.
Coinciding with the crypto-happy news, the world’s largest digital asset, $BTC, draws ever nearer to $100K.
Gensler’s Taken Ripple, Coinbase & OpenSea to Court
Appointed on April 17, 2021, Gensler was employed to enhance the integrity and safety of capital markets (treasury, equity, corporate governance, and crypto).
In the crypto market, he’s been actively pursuing case after case against blockchain companies for various misconducts (including wash trading, fraud, and security token violations).
Some recent lawsuits include those against the crypto exchanges Ripple ($XRP) and Coinbase, the NFT marketplace OpenSea, and Web3 gaming firm Immutable.
However, his actions have more often than not sparked controversy.
Crypto Lovers Celebrate Gensler’s Retirement
Flicking through the comments on Gensler’s retirement notice on X highlights the public’s true sentiment about the SEC chairman.
The vast majority of the current 17K replies on the thread celebrate Gensler’s retirement and give him backlash.
Good riddance. You went after innocent token founders that did no harm, but you completely ignored the real crooks like FTX and Celcius who stole everyone’s money. You are corrupt and rotten to the core, Gary.
There are rumors that Trump will replace Gensler with pro-crypto Attorney Teresa Goody Guillen. Her SEC experience and blockchain expertise work in the industry’s favor.
Between 2009 and 2011, Guillen served as an attorney for the SEC’s Office of the General Counsel. She’s also the co-lead of the blockchain team of Baker & Hostetler (a prominent law firm).
According to a Reuters report, Dan Gallagher, the present chief legal and compliance officer at Robinhood, is another consideration for SEC chairman.
SEC Lawsuits Might Go Poof, Suggests Pantera
Paglia (Pantera’s CLO) believes the SEC lawsuits will ‘quietly go away’ after Gensler steps down.
During a recent panel discussion, she voiced that they’ll likely ‘make some level of statement’ to avoid the government wasting time and energy, which could be ‘very beneficial.’
According to her, the SEC might issue ‘no-action’ letters that imply it won’t be taking legal action against those under scrutiny – a significant step toward a more favorable US crypto regulatory environment.
She also believes the new US regulator might adopt a ‘neither admit nor deny’ language, which would welcome more negotiable resolutions.
$BTC Hit ATH After ATH Following Trump Presidency
Bitcoin has been hitting ATH after ATH since Donald Trump won the 2024 US presidential election on November 6.
Before his presidential win was announced on November 5, $BTC was valued at around $68K.
Despite being commendable at the time, it has since jumped by 44.12% to $98K. Bitwise predicts the coin will hit $100K soon.
Beyond Trump’s promise to boot Gary Gensler, additional factors pumping up the crypto market include his advocacy for a strategic Bitcoin reserve (to loosen the US $34T debt) and his promise never to sell Bitcoin (starkly contrasting to the Biden administration).
Gensler’s Likely Fearful of Getting the Boot
The US’s strict crypto regulations will likely loosen once Trump reclaims the presidential seat on January 20, 2025, upon Gensler’s SEC exit.
Gensler stepping down as SEC chairman on the same day Trump moves back into the White House suggests he’s fearful of being fired.
Judging by his past actions and the community’s response, it was likely a wise – yet tough – decision for him to make.
The SEC, regretting confusion over classifying crypto as securities, appears to have come too late.
It’ll be interesting to watch $BTC’s future trajectory as the industry continues to amass significant backing.
References
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Leah is a seasoned British journalist with nine years of expertise who specializes in Web3 reporting. Her insightful contributions have graced the pages of respected publications, including Coinbound, Cointelegraph, Bitcolumnist, NFT Lately, and NFT Plazas. With a keen eye for detail, she offers distinct perspectives on the ever-evolving blockchain industry.
The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.
