Gensler Defends SEC's Crypto Regulation Approach as His Tenure Nears End

SEC Chairman Gary Gensler recently defended his approach to regulating the cryptocurrency markets. He hinted that his time in this role might be coming to an end. Gensler emphasized the importance of investor protection and compliance, stating that these factors are vital for building trust and encouraging innovation.

During his speech at the Practicing Law Institute’s annual securities regulation event, Gensler highlighted the SEC's long history of overseeing crypto. He mentioned notable cases like Ripple (XRP) and pointed out how consistent the Commission's actions have been over the years.

Since 2018, Gensler noted that about 5-7% of SEC enforcement actions have focused on digital assets. He made it clear that the agency aims at specific non-compliant participants rather than the entire crypto market. He also stated that many courts have upheld the SEC's authority over securities offerings, even when they involve digital forms.

“Everything we’ve done is about ensuring compliance with our laws,” Gensler said. He stressed that protecting investors through proper disclosure and oversight is a top priority. Compliance, he argued, is key to fostering trust in the market.

Gensler pointed out the SEC's approval of Bitcoin futures ETFs in 2021, along with other products related to Bitcoin and Ether. He explained that these regulated offerings provide benefits such as lower fees and greater transparency, setting them apart from the wider crypto markets.

While Bitcoin, Ether, and stablecoins make up a large part of the crypto market, Gensler acknowledged that many other assets are speculative and still need to prove their long-term use cases. He concluded by thanking his colleagues at the SEC, saying it has been a great honor to work with them and ensure that capital markets remain the best in the world.

As Gensler's term comes to a close, his regulatory approach continues to have a significant impact. His comments come at a time when the digital asset community is actively engaging in discussions, particularly at events like Benzinga's Future of Digital Assets conference on November 19, where topics of regulation and innovation are front and center.