SEC Chair Gary Gensler’s speech at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation has sparked speculation about his incoming resignation.
This has drawn mixed reactions from the crypto community, with Gemini's Tyler Winklevoss taking to Twitter to openly label Gensler as "evil."
Historically, SEC Chairs step down with a change in U.S. administration.
While Gensler is rumored to step down by Thanksgiving, the SEC's next moves remain to be seen.
The speculation around Gary Gensler’s resignation has become all the more heated this week.
Gensler, the current chair of the U.S. Securities and Exchange Commission, made a few interesting remarks at a recent event.
While speaking, Gensler spoke in the past tense about his tenure at the SEC.
In essence, Gensler (who has faced intense criticism for his approach to crypto regulation) fueled the rumors of his departure from the agency.
Here are all the details of how things unfolded, as well as the community's reaction.
It all started during a speech at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation.
While speaking to the audience, Gensler expressed pride in his time at the SEC.
“I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance,” he said.
Gensler is leaving the SEC.
Although no official resignation announcement has been made, his comments have been interpreted as a signal that his tenure as SEC Chair could be ending.
This speculation is fueled by Donald Trump’s recent victory in the presidential election on November 5.
Recall that prior to winning the election, Trump had also stated that he would “fire Gary Gensler on day one” if elected.
Another interesting factor is that, historically, SEC chairs have often stepped down when a new president assumes office.
This, along with Trump's promise, has been one of the biggest sources of fuel for the rumors.
Gary Gensler’s three years at the SEC have been marked by harshness, according to crypto commentators.
The SEC Chair is mostly known for his aggressive regulatory approach toward the crypto.
He has consistently argued that many cryptocurrencies are securities and not commodities—a stance that has served as the basis of many enforcement actions against companies/entities like Consensys, Binance, Coinbase, Ripple, and so on.
This criticism of Gensler’s approach boiled over with Tyler Winklevoss, co-founder of the Gemini Exchange, this week.
In a recent tweet, Winklevoss openly labeled Gensler as “evil” and accused him of causing significant damage to the crypto sector.
“Let's all be clear on one thing. @GaryGensler is evil." Winklevoss wrote, "Gensler's behavior can't be explained away as a good-faith mistake. Even if this meant nuking an industry, tens of thousands of jobs, people’s livelihoods, and billions of invested capital.”
He also accused Gensler of prioritizing personal ambition over the industry's well-being.
Tyler Winklevoss’ criticism isn’t all that Gensler has to worry about.
The SEC Chair's tenure is also under pressure on the legal side, considering how, on 14 November, 18 U.S. states filed a lawsuit against the SEC.
These states are accusing the agency of “gross government overreach” and a “regulatory land grab.”
Gensler being sued
Some of the involved states include Texas, Wyoming, and Ohio, with bipartisan support.
It is interesting to note that Gensler’s term has a natural end set for 2026, and a sitting president cannot remove an SEC chair.
Not unless there is evidence of inefficiency, neglect of duty, or malfeasance.
Still, the speculation remains strong with Trump’s election victory prompting discussions about possible replacements—like Robinhood’s Chief Legal Officer, Dan Gallagher.
For some in the crypto industry, Gensler’s resignation is seen as a major turning point.
Michael Saylor, the founder of MicroStrategy, for example, described the moment as “incredibly bullish for digital assets.”
Others see the incoming change in leadership as a chance to establish clearer regulatory frameworks in the industry.
The crypto community has long criticised the SEC for its “hostility”, which has created a more difficult environment for basic financial services.
While Gary Gensler has not confirmed his resignation, the signs show that his time at the SEC might be nearing its natural end.
Amid the criticism, his tenure has been both transformative and controversial, with a major mark on the crypto industry.
Through it all, the future of U.S. crypto regulation hangs in the balance.
Whoever takes Gensler's job will be tasked with huge responsibilities—responsibilities pertaining to addressing regulatory gaps to protect investors while encouraging innovation.
For now, the next move with Gensler and the SEC remains to be seen.
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