The debate over how to regulate cryptocurrencies in the United States intensified this week as former SEC Chair Gary Gensler publicly defended his enforcement-heavy approach, even as the agency under new leadership signals a dramatic shift in direction.
Gensler Stands by Enforcement Approach
In a rare interview since stepping down in January, Gensler told CNBC that he had “no regrets” about the SEC’s aggressive stance toward crypto during his tenure. He argued that digital assets remain “highly speculative and very risky”, stressing that the regulator’s actions were necessary to protect investors.
“We were consistently trying to ensure investor protection. And in the midst of it, we had a lot of fraudsters — look at Sam Bankman-Fried, and he wasn’t alone,” Gensler said.
Gensler, who led the SEC from 2021 to early 2025, oversaw lawsuits and enforcement actions against several major crypto firms. Critics accused him of pursuing “regulation by enforcement,” but Gensler maintained that his policies were justified by the wave of collapses and frauds that hit the sector.
Trump Administration Pushes SEC Sea Change
Gensler’s departure coincided with President Donald Trump’s inauguration on Jan. 20, 2025, fulfilling Trump’s campaign pledge to remove him “on day one.” Since then, the SEC — now led by Chair Paul Atkins — has reversed many of Gensler’s measures.
The Trump-aligned SEC has:
- Dropped several lawsuits against major crypto companies.
- Declared that “very few tokens are securities”, signaling a lighter regulatory stance.
- Streamlined approval standards for crypto exchange-traded funds (ETFs).
These moves have been welcomed by many in the digital asset industry, which long argued that Gensler’s approach stifled innovation.
Corporate Reporting Rules on the Line
Perhaps the most significant proposed shift goes beyond crypto. Trump suggested eliminating quarterly reporting requirements for U.S. companies, reducing them to twice a year. Atkins confirmed on Friday that the SEC is “considering” the proposal.
Gensler, however, warned that such a change could reduce transparency and increase volatility:
“If we go to only twice-a-year reporting, the markets will be a bit more volatile.”
The SEC’s evolving stance highlights the stark contrast between Gensler’s strict oversight and the Trump administration’s pro-market approach. For investors, the coming months could redefine the balance between regulatory safeguards and market freedom in both crypto and traditional finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.