SEC Chair Gary Gensler, under pressure from both sides of the aisle and with former President Donald Trump threatening to remove him, has defended the agency's regulatory approach.
Gensler, speaking at a financial technology conference in Las Vegas, reiterated his commitment to his role at the SEC. He acknowledged the political pressures, particularly from the cryptocurrency industry, as the November 5th election draws closer. He stated:
"In a democracy, actions have consequences, but we will continue to excel in our regulatory duties at the SEC until the referee blows the whistle."
As the election looms, both Republicans and Democrats have expressed their dissatisfaction with Gensler. Trump has pledged to dismiss the SEC chair on his first day in office, and some cryptocurrency supporters within Vice President Kamala Harris' circle have also voiced their support for his removal under a potential new administration.
Gensler faces frequent criticism from the cryptocurrency industry and certain lawmakers for his approach of "regulation by enforcement," which prioritizes enforcement actions over clear guidance. Critics argue that this strategy creates uncertainty and hampers innovation, leaving companies vulnerable to legal action without clear compliance guidelines. However, Gensler defends the SEC's position, asserting that existing securities laws already cover most digital assets and that crypto companies must adhere to these established rules to safeguard investors.
Appointed by President Joe Biden in 2021, Gensler addressed the challenges of working amidst changing political leadership, stating:
"Traditionally, it is up to the presidents to decide who chairs the SEC. This is an integral part of democracy."