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Gary Gensler may be on his way out at the SEC, and he probably knows it. With Trump back in the Oval Office, the rulebook’s about to be thrown out, and Gensler’s regulatory hammer against crypto isn’t exactly on-brand for the new administration. 
You see, it’s tradition for SEC chairs to hand over the keys when a new president takes office. Let’s just say that handing over the gavel isn’t exactly voluntary—but it keeps the power dynamics clean. Gensler might even call it quits himself to avoid the inevitable shove. 
Take Jay Clayton, Trump’s own appointee. He cleared out by December 2020, a smooth, almost courteous departure before Biden’s arrival. Mary Jo White, the SEC chair before him, appointed by Obama, did the same, stepping down on Inauguration Day in 2017. 
It’s a classic SEC maneuver, and if history’s on repeat, Gensler might pack up by year’s end. That clears the way for a new SEC chair by April or May, a chair who’ll likely play a little nicer with crypto—or at least won’t have Gensler’s wrecking-ball approach to it. 
<h3 id="span-style-font-weight-400-gensler-s-warpath-on-crypto-span">Gensler’s warpath on crypto</h3> 
Let’s talk about why the crypto world’s been holding its breath every time Gensler opens his mouth. This guy isn’t shy about his distaste for digital assets. Since day one, he’s made it his mission to declare most cryptocurrencies as securities, pulling out the Howey Test like it’s his own private weapon. 
According to Gensler, almost any digital asset qualifies as an “investment contract.” That’s government-speak for “it’s our job to watch over it.” And watch over it, he did. He’s painted the crypto landscape as a scam-ridden wasteland, tossing around phrases like, “some of the leading lights in the field are either now in jail or awaiting jail or extradition.” 
It’s not just words, either. Gensler’s actions have hit hard, earning him the reputation as crypto’s worst nightmare. Coinbase, Binance—these aren’t small players, and he’s gone after them with lawsuits like they’re two-bit scams. 
June 2023 was a banner month for Gensler’s crackdown; that’s when the SEC dropped legal hammers on both Coinbase and Binance for allegedly violating investor protection laws. The charge? Offering “unregistered securities.” In plain terms, Gensler thinks they’ve been selling crypto products that need the SEC’s blessing, and they haven’t gotten it. 
Crypto industry voices have been vocal, to say the least. The mantra is clear: Gensler’s killing innovation and driving businesses out of the U.S. It’s a regulatory suffocation, pushing companies to friendlier shores like Dubai or Hong Kong. 
Coinbase’s CEO, Brian Armstrong, called out the SEC’s inconsistency, saying that unclear definitions from the top don’t exactly build trust. His frustration echoes throughout the industry: Gensler’s creating confusion rather than clarity. 
<h3 id="span-style-font-weight-400-regulation-by-enforcement-span">“Regulation by enforcement”</h3> 
One of the biggest gripes with Gensler’s tenure is his method: “regulation by enforcement.” Instead of setting clear rules, he’s throwing legal challenges at companies, one by one. Here’s how that looks: you’re running a crypto business, and the SEC won’t say what rules you’re supposed to follow. 
Then, out of nowhere, the SEC sues you for breaking the rules they never clearly laid out in the first place. It’s like a game where only one side knows the rules, and Gensler’s team is all in on playing gotcha. 
Crypto players argue that this approach makes it impossible to do business stateside. Why risk innovation if you might get dragged into a courtroom by the SEC? Gensler’s relentless style leaves no room for growth; it’s just one lawsuit after another. 
In the SEC’s eyes, this keeps investors safe, but for crypto advocates, it feels like a crackdown designed to strangle an industry the government doesn’t understand or trust. 
Yet, Gensler hasn’t backed down. He says these regulations protect people from fraud and scams, and his statements don’t hide his low opinion of crypto culture. After the FTX collapse, his rhetoric only sharpened. “There are too many fraudsters, too many bad actors,” he warned, solidifying his image as the industry’s ultimate roadblock. 
<h3 id="span-style-font-weight-400-political-shifts-and-industry-dynamics-span">Political shifts and industry dynamics</h3> 
With Trump back though, Gensler’s crackdown days might be numbered. Trump has promised a friendlier regulatory stance on crypto, which stands in stark contrast to Gensler’s hardline approach. Trump’s administration isn’t exactly about “regulation by enforcement.” Industry insiders have suggested that a new chair could mean breathing room for crypto, even an apology for the tough treatment from Gensler’s era. 
In the broader regulatory scene, the pressure has been on ever since FTX’s meltdown. Lawmakers are now juggling the need for investor protection with the push for innovation, and they’ve been demanding clearer rules from the SEC. 
Gensler’s critics in Congress aren’t just looking for a regulatory reform—they want stability, something that’ll give crypto companies confidence to operate in the U.S. without fearing the SEC’s next swing. 
The push for new crypto laws has grown louder, and Congress has recently been on it. The House passed a bill to create a structured regulatory framework for digital assets, setting clearer rules for the industry to follow. Gensler? He’s not a fan. 
He’s called out this bill for creating “regulatory gaps” that could weaken investor protections. From his standpoint, if crypto firms can “self-certify” their products as decentralized systems, oversight could slip. 
While the industry’s lobbying for legislative clarity, Gensler argues that crypto companies have already caused enough chaos. The SEC believes crypto companies aren’t just startups—they’re securities issuers, and without tight rules, they’ll only lead investors into more fraudulent ventures. 
<h3 id="span-style-font-weight-400-lawsuits-on-gensler-s-watch-span">Lawsuits on Gensler’s watch</h3> 
Crypto companies aren’t just sitting back. Coinbase, for instance, fought back against the SEC, trying to dismiss charges related to supposed investor protection violations. But they hit a wall, stuck in a legal maze that shows just how tough it is to fight the SEC. 
Binance faced similar challenges; lawsuits and regulatory scrutiny have kept them locked in endless legal battles.&nbsp; Advocates see these suits as proof that the SEC’s method is about suppressing crypto growth.&nbsp; 
“Regulation by enforcement” only makes the U.S. less attractive, driving startups to international hubs that have clearer rules and less antagonistic regulators. With Trump in charge, Gensler’s tactics are likely on borrowed time.

SEC Gary Gensler will likely step down himself after Trump’s win

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