On January 14, 2025, Gary Gensler gave a farewell interview on CNBC. On January 20, he will step down from his position as Chairman of the Securities and Exchange Commission. What are their decisive words for the cryptocurrency community?
In the beginning interview, The host, Andrew Ross Sorkin, makes a remark that sets the context. He points out that even in the last few days of Gensler's tenure as SEC chairman and the launch of Trump Administration 2.0, Robinhood brokers had to settle $45 million in SEC charges tied to violations of ten legal provisions.
At the time, Sorkin did not know that after the interview, the SEC would reinstate the case against Ripple.
Sorkin's astute observation that sets the tone depicts Gensler as a soldier who fights relentlessly to protect the prehistoric laws of the booming cryptocurrency sector. Let's see what Gary told the CNBC hosts about various topics during his exit interview.
Trump 2.0 as a pro-crypto administration
Gensler acknowledged that cryptocurrency donors were prominent in sponsoring the Trump campaign, and noted that the election was not about cryptocurrencies.
He stated that his predecessor, Jay Clayton, who will serve in the new Trump administration, raised 80 cases during his last term. Gensler appears to be hinting that the new administration will not tolerate lawbreakers, no matter how pro-cryptocurrency it may be.
Gensler's bottom line: Cryptocurrencies are securities. a period
Sorkin noted that Gensler, during his tenure, was fighting cryptocurrency companies, relying on existing laws while not working to create laws that would take into account the changing reality.
This question is really valid as Gensler is known to be someone who tends to do so Most cryptocurrencies are equated with unregistered securities, Which is a very uncomfortable way to perceive cryptocurrencies for cryptocurrency companies.
Instead of pushing new rules to efficiently regulate cryptocurrencies, Gensler was trying to push cryptocurrencies into a legal configuration that already existed, no matter how unsuitable for cryptocurrencies. For the most part, these laws were not created with cryptocurrencies in mind, and often predate their widespread existence.
Gensler insists that most cryptocurrency projects must comply with laws regulating securities, and in many cases, they fail to comply. in spite of Initial interest in BitcoinGensler under the SEC does not see cryptocurrencies as something that did not exist before and sticks to his position, repeating the slogan “Cryptocurrencies are nothing but unregistered securities.”
In response to Sorkin's question, he said that cryptocurrencies are mostly traded on sentiment and not fundamentals, but if (sic!) the fundamentals are in place, then crypto companies must make disclosures that adhere to securities laws.
Bitcoin is not a security, but other cryptocurrencies are dangerous
Bitcoin is not a security now (sic!), Gensler said, but thousands of other cryptocurrencies pose a threat to the investing public, and it is his duty as a law enforcement agent to protect those people from fraud, money laundering and other crimes. “There's been a lot of that in this area,” Gensler said. What's more, he is certain that the exchanges "trade against their clients."
As for Bitcoin, Gensler compared the first cryptocurrency to gold and noted that it is a highly volatile speculative asset, but people want to trade it. However, Gensler said he can't predict Bitcoin's future, and doesn't know if it will have any value 10 or 20 years from now.
Sorkin said Gensler's attempts to fight Bitcoin were in vain, because at the end of the Gensler era, Bitcoin was enjoying unprecedented popularity. Meanwhile, Gensler has failed to prevent this great bubble from bursting (if it proves to be a bubble). Gensler twice evaded comment on how he felt about his role in both scenarios, and neither portrayed him as a winner. He listed his major accomplishments as Chairman of the Securities and Exchange Commission, and mentioned reforms in stock market policy and other non-cryptocurrency sectors.
conclusion
It is interesting how Gary Gensler went from a tech-savvy administrator who was genuinely interested in the potential of blockchain technology to a strict gatekeeper in just two years. In 2019, he wrote an inspiring op-ed about the future of Bitcoin for CoinDesk. In 2021, he became the most notorious cryptocurrency enemy in SEC history.
The person who He is called famous Stablecoins “Poker Chips” for Gambling He devoted his time at the SEC to legal battles with Binance, Coinbase, Ripple, and Gemini while overseeing the collapse of FTX. Hopefully, after he retires, he will find peace. He says he has never owned any cryptocurrencies. Who knows what's next for Gensler, will he soften his heart toward Bitcoin?
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