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Gensler to resign as SEC chair: What’s next under Trump?

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Gary Gensler, the high-profile and often polarizing chair of the U.S. Securities and Exchange Commission, announced his resignation, effective the day President-elect Donald Trump takes office.

Here’s the announcement on X:

Gensler’s decision is hardly unexpected for those attuned to Washington’s political rhythms. Leadership changes at federal agencies often coincide with the arrival of a new administration, especially when there’s an ideological shift. 

Here’s a closer look at the situation.

Gensler’s crackdown on crypto

Although Gensler’s term was slated to run through 2026, his resignation aligns with these unwritten rules of political transitions.

Gensler’s tenure, which began in 2021 under President Joe Biden, has been anything but uneventful. Known for his bold and uncompromising regulatory stance, he led an unprecedented crackdown on the crypto industry—a sector he once described as “rife with fraud and hucksters.”

Under his leadership, the SEC initiated a record 46 enforcement actions against crypto-related entities in 2023 alone, a 53% increase from 2022. 

Some of the crypto-related lawsuits filed seemed reasonable. For example, the SEC’s case against Terraform Labs involved allegations of a massive fraud scheme. In June, a federal jury ruled against Terraform and its co-founder Do Kwon. They were ordered to pay over $4.5 billion in penalties, the largest ever imposed in a crypto-related case.

While some applauded his efforts to bring order to the industry, Gensler’s critics often accuse him of regulatory overreach and stifling innovation, particularly when it comes to cases against Ripple (XRP) and Coinbase.

Trump, whose family launched a crypto startup this year, vocalized his disdain for Gensler on the campaign trail and pledged to replace him “on day one.”

Dan Gallagher, Robinhood Markets’ chief legal officer, was considered a possible replacement for Gensler, but he is no longer interested.

As the SEC prepares for this leadership change, the agency faces critical questions about its future direction. What does Gensler’s departure mean for financial regulation in the U.S.? Who will take the reins, and how will their approach shape the nation’s financial landscape?

When Gensler confirmed his resignation, social media — particularly crypto enthusiasts populating X — erupted with tweets that ranged from bitter resentment to cautious relief. 

Many within the crypto community didn’t hold back, particularly supporters of Ripple. Known as the “XRP Army,” they had long blamed Gensler for the SEC’s aggressive lawsuit against Ripple Labs, which tanked the value of XRP and dragged the community into a years-long legal battle. 

“Congratulations to the XRP Army—this is the moment we’ve been waiting for,” one XRP supporter tweeted.

Criticism extended beyond XRP, with retail investors calling Gensler’s tenure “the most destructive period in SEC history.” They cite his initial resistance to approving a Bitcoin (BTC) ETF and his handling of smaller investor disputes, such as the MMTLP stockholder case.

Adding to the backlash, the same post referenced a federal judge’s reported reprimand of the SEC in another enforcement case, framing it as a reflection of Gensler’s heavy-handed and controversial approach. 

“Thank you for protecting no one from actual scams. You set America back years in crypto,” another social media user quipped.

High-profile industry figures also joined the chorus of criticism. Justin Sun, the founder of Tron (TRX), took a harsher tone, calling Gensler’s resignation “too late” and lamenting the “massive damage” he allegedly inflicted on U.S. markets and the global economy.

In the end, Gensler’s exit isn’t just the close of a contentious chapter; it’s the start of a critical transition for the SEC and the industries it oversees.

Who will lead the SEC next?

With Gensler’s resignation, the focus is shifting to who will succeed him—a decision that could reshape the future of crypto regulation in the U.S.

Journalist Eleanor Terrett of Fox Business has suggested that the next SEC chair may bring a fresh outlook on crypto. 

According to her sources, the incoming administration is prioritizing a candidate who is “pro-crypto” yet equipped to handle the SEC’s broader responsibilities, including oversight of public companies, stock and bond markets, and private funds.

Among the leading contenders is Paul Atkins, a former SEC commissioner known for his free-market philosophy and favorable stance on crypto. 

Charles Gasparino of Fox Business reported that Atkins is currently viewed as a frontrunner, buoyed by strong support from both the business and crypto communities. 

Atkins’ approach stands in stark contrast to Gensler’s enforcement-heavy style. While critics argue that Atkins may be too lenient, his supporters believe his leadership would promote innovation by lowering regulatory barriers.

Another prominent name in the running is Robert Stebbins, a partner at Willkie Farr & Gallagher and former SEC General Counsel under Jay Clayton. 

Stebbins is widely regarded as a steady and pragmatic candidate, offering deep legal and regulatory expertise. While his pro-crypto stance is less favorable than Atkins’, his previous experience at the SEC gives him credibility with both policymakers and financial institutions.

Teresa Goody Guillén is also emerging as a potential candidate. A veteran of the SEC and a partner at BakerHostetler, where she co-leads the blockchain practice. 

Crypto companies are reportedly advocating for her nomination, confident that her dual experience as an SEC insider and blockchain advocate would bring a balanced perspective to the role.

Brian Brooks, the former Acting Comptroller of the Currency, is another notable name being floated for key financial regulatory positions, including the SEC chair. 

Dubbed the “Crypto Comptroller” for his blockchain-friendly policies during his tenure at the OCC, Brooks has been a vocal proponent of integrating crypto into mainstream banking. 

While Terrett noted that Brooks is under consideration for multiple roles beyond the SEC, his appointment here could signal a transformative period for crypto regulation.

Interestingly, the shakeup may not be limited to the SEC. Terrett suggests that the Trump administration is exploring an expanded role for the Commodity Futures Trading Commission in crypto oversight. 

Such a move could involve splitting regulatory responsibilities between the SEC and CFTC—or even transferring primary authority to the CFTC entirely. 

However, as Terrett pointed out, this shift would require a colossal increase in funding for the CFTC, which currently lacks the resources to manage such an expansive mandate. For now, speculation continues.

Preparing for the change

Gensler’s resignation has left crypto industry insiders speculating about what lies ahead, with many experts pointing to a mix of challenges and opportunities. 

Slava Demchuk, CEO of AMLBot, in a conversation with crypto.news talked about one of the most pressing issues: the lack of clear rules for crypto in the U.S., especially compared to the EU’s Markets in Crypto-Assets Regulation. 

“Without clear regulations, crypto companies have been left in limbo, unable to fully understand compliance requirements or attract major institutional players.”

One particularly thorny problem is crypto companies’ struggles to access banking services. Niko Demchuk, Head of Legal at AMLBot, described how banks in the U.S. are often hesitant to work with crypto firms due to the risk of regulatory fallout. 

“Banks don’t want to associate with companies that might be out of compliance. Even indirect ties to crypto can bring scrutiny or fines, creating bottlenecks for the industry, making it difficult for businesses to perform everyday financial operations.”

If the next chair adopts a more crypto-friendly stance, there’s potential for key improvements, including clearer regulations, better access to banking, and a more welcoming environment for innovation. 

The prospect of a regulatory framework similar to the EU’s MiCA is also gaining traction. Experts believe that such a framework could bring greater consistency to the U.S. market, addressing issues like cybersecurity, anti-money laundering, and market manipulation. 

For crypto companies, this transitional period is an opportunity to get ahead and focus on strengthening compliance systems, enhancing know-your-customer processes, and investing in tools like transaction monitoring. 

“Businesses need to be proactive. Regulatory changes are coming, and those who are prepared will have a smoother adjustment,” Demchuk added.

For crypto firms, the time to act is now—because what comes next could reshape the future of the crypto industry in the U.S. and across the globe.





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Aptos

Trump Makes More Pro-Crypto Appointments

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1 day ago

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December 24, 2024

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Welcome to The Protocol, CoinDesk’s weekly wrap-up of the most important stories in cryptocurrency tech development.

In this week’s issue of the Protocol newsletter:

  • Trump’s crypto team
  • Aptos’ leadership shake-up
  • TikTok meets tokens
  • Kraken scales up

This article is featured in the latest issue of The Protocol, our weekly newsletter exploring the tech behind crypto, one block at a time. Sign up here to get it in your inbox every Wednesday.

Network News

TRUMP CRYPTO APPOINTMENTS: President-elect Donald Trump continues to make high-profile appointments embracing cryptocurrency and emerging technologies in his second term. 1) Stephen Miran, tapped as Chair of the Council of Economic Advisers, is a pro-crypto advocate who aims to integrate blockchain and decentralized finance into the U.S. economy. 2) Bo Hines, a former college football player, will head the newly formed Crypto Council. Hines is tasked with balancing innovation and consumer protection as he builds a regulatory framework for digital assets. 3) David Sacks, a veteran of Silicon Valley and vocal blockchain supporter, is stepping in as AI and Crypto Czar. Sacks plans to merge blockchain with AI while bolstering U.S. dominance in both sectors. These appointments signal a clear shift from Trump’s earlier skepticism of digital assets. The big question now is how these moves translate into meaningful policy amid regulatory gridlock and political friction.

APTOS LEADERSHIP SHIFT: Aptos Labs CEO and co-founder Mo Shaikh has stepped down, with co-founder Avery Ching taking over as CEO. Shaikh, who will remain a strategic adviser, highlighted the company’s achievements, including raising $400 million in venture funding and building a thriving ecosystem supported by partners like BlackRock, Google, Mastercard, and PayPal. Known for its layer-1 blockchain leveraging the Move programming language from Facebook’s Diem project, Aptos Labs is expanding into finance and AI applications with the help of advisers like former Grayscale CEO Michael Sonnenshein and OpenAI’s Kevin Weil. The leadership transition underscores the company’s ongoing focus on scalability, security, and innovation in blockchain technology.

SONIC TO AIRDROP TIKTOK: Sonic, a Layer 2 solution on the Solana blockchain, has announced plans to airdrop its native token, SONIC, to TikTok users. This initiative aims to introduce TikTok’s vast user base to decentralized finance (DeFi) by integrating blockchain technology with social media platforms. The airdrop is part of Sonic’s strategy to enhance user engagement and promote the adoption of Layer 2 solutions for improved scalability and reduced transaction costs on the Solana network. By targeting TikTok users, Sonic seeks to bridge the gap between mainstream social media audiences and the DeFi ecosystem, fostering broader participation in decentralized financial services.

ALSO:

  • MicroStrategy added 5,262 BTC to its holdings as its stock secures a spot on the Nasdaq 100, reinforcing its long-standing Bitcoin strategy.
  • Nokia enters the crypto world with a patented technology for encrypting digital assets, signaling its move into blockchain innovation.
  • Ripple’s legal chief urges Congress to focus on regulating crypto practices rather than stifling innovation by targeting the technology itself.

Feature: Kraken’s Ink Layer-2 Goes Live

Kraken's layer-2 Ink goes live on mainnet (CoinDesk)

Kraken, the seventh-largest crypto exchange, said its layer-2 rollup network, built on top of the Ethereum blockchain, has gone live.

The network, called Ink, is based on the OP stack, a customizable framework that lets developers build their own rollups using Optimism’s technology. The team had originally planned for Ink to go live in early 2025, so the launch of its main network is ahead of schedule.

Kraken agreed to receive 25 million OP tokens (worth about $58 million) as part of a deal to build on the OP Stack. Optimism has acknowledged that handing out developer grants for participants building on the stack is part of its strategy, which in turn contributes back to the wider “Superchain” ecosystem.Kraken competitor Coinbase said in August 2023 that it would build a layer-2 network with OP Stack.

The product, called Base, is now the second-largest rollup network according to L2beat. At the time, Optimism said the Base team would receive up to 118 million OP tokens and, in return, would contribute the higher of 2.5% of its sequencer revenue or 15% of its profits to the Optimism Collective.

Read the full story by Margaux Nijkerk here

Money Center

Fundraising

  • Avalon Labs has secured $10 million in a Series A funding round to expand its Bitcoin-backed stablecoin, aiming to enhance liquidity and stability in the cryptocurrency market. The investment reflects growing interest in Bitcoin-collateralized financial products as a bridge between traditional finance and digital assets.

Deals & Grants

  • Tether has announced a $75 million deal to acquire a stake in Rumble, a video-sharing platform. The investment aims to support decentralized media and aligns with Tether’s commitment to fostering open communication technologies.

Data & Tokens

  • Bonk (BONK) surged 30%, leading a rebound among dog-themed meme tokens, with Shiba Inu (SHIB) and Dogecoin (DOGE) also experiencing gains. Additionally, the Commodity Futures Trading Commission (CFTC) classified Floki (FLOKI) as a utility token, potentially influencing its regulatory status.

Data Corner: 60M USDC Outflows Hit Hyper Liquid

Hyper Liquid, a cryptocurrency exchange focused on perpetual contracts, has reported a record outflow of $60 million in USDC amid speculation that North Korea is investigating the platform. The sudden exodus of funds raises questions about the exchange’s liquidity and the stability of its operations. This highlights the growing tension of crypto markets with geopolitical issues, as regulatory scrutiny and potential misuse of platforms by state actors come into focus. The incident underscores the vulnerabilities in crypto markets, particularly for exchanges dealing with high-risk financial products like perpetual contracts. Hyper Liquid’s situation may prompt further scrutiny of similar platforms, emphasizing the need for stronger safeguards in the face of increasing global regulatory pressure.

USDC net flows on HyperLiquid. (Hashed Official/Dune)

Get the full scoop by Omkar Godbole here

Calendar





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Donald Trump

Michael Saylor is willing to advise Trump on the crypto policy

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4 days ago

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December 21, 2024

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MicroStrategy Inc. co-founder and executive Chairman Michael Saylor says he is willing to advise Trump on cryptocurrency policy when the crypto advisory council is set.

During the Dec. 18 episode of the Open Interest show on Bloomberg Television, Saylor voiced his willingness to provide his advice on the digital assets policy to President-elect Donald Trump, either publicly or confidently, if he is asked to do so. 

Before expressing his willingness to advise Trump on the crypto policy, Saylor admitted that he had already met “with a lot of people” in the incoming administration but declined to specify the personalities nor mentioned if he already met Trump. 

Is Saylor fit for a position?

Since the 2020s, Michael Saylor has been one of the key Bitcoin advocates and investors. Saylor is one who puts money where his mouth is, as he personally spent around one billion dollars on BTC. In 2020, Saylor took to X (Twitter at the time) to announce that he personally owns 17,732 bitcoins and that he acquired these coins before MicroStrategy (MSTR) made the first massive purchase of bitcoins. YahooFinance! reports that currently MicroStrategy owns around 440,000 BTC, which is close to a 2% share of the entire BTC supply. MicroStrategy made headlines on the eve of the latest BTC price peak when the company was included in the Nasdaq 100 index. 

Michael Saylor names Bitcoin an apex property of the human race and has an insatiable thirst for bitcoins. He compares Bitcoin to the territories like Manhattan or Alaska that were bought by the early colonist administration, specifying that Bitcoin is rather a kind of cyberspace. That’s why MicroStrategy aims to own bitcoins in bulk. According to Saylor, buying as much of this “space” as possible is crucial for the United States. This vision speaks to the statement posted by Donald Trump on the Truth Social platform. “We want all the remaining Bitcoin to be MADE IN THE USA!” the post reads.

Saylor singled out Trump as the most crypto-friendly Republican politician. It seems that Saylor shares the President-elect’s views on Bitcoin. Although not an outright GOP supporter, in September, Saylor made claims that he sees Republicans as a more progressive party when it comes to cryptocurrency regulation. He names regulation pressure decrease, treating crypto as a tool to boost the U.S. economy, and encouraging individuals to pursue their economic aims using digital finance as progressive characteristics of the Republican approach to the crypto industry. 

What Do We Know About the Crypto Advisory Council?

Trump proposed the creation of a crypto advisory council during his now famous speech at the Nashville cryptocurrency conference in July 2024. As of December, not much information about the preparations of this council has been made public. 

The participating companies’ lineup is not clear yet. However, it has been reported that such brands as Coinbase, Ripple Labs, Paradigm, and Andreessen Horowitz (a16z) are seeking interactions with the incoming administration. Allegedly, an a16z rep was involved in advising the Trump team during the presidential campaign. On December 6, Trump introduced entrepreneur and venture capitalist David O. Sacks as the “White House A.I. and Crypto Czar” via the Truth Social post.

It’s worth saying that, to say the least, before 2024, Trump wasn’t an avid crypto enthusiast. In the past, the President-elect made a series of anti-crypto remarks, calling Bitcoin “not money” and saying that the value of cryptocurrencies is based on thin air. 

However, the 2024 Presidential campaign saw a drastic change in Trump’s stance on crypto. He started to take donations in digital currencies, visited a major crypto conference in Nashville where he promised to make America “a crypto capital of the world,” and made several important proposals concerning the cryptocurrency policy.

On top of tax cuts for the U.S. cryptocurrency companies, the removal of Gary Gensler from the SEC, and the creation of the strategic Bitcoin reserve, Trump announced the creation of the advisory body with the leading position granted to the richest man on Earth and his passionate supporter Elon Musk. This unofficial agency is called The Department of Government Efficiency, or simply DOGE, a reference to a legendary memecoin, a notorious soft place of a Tesla CEO. Who knows just what else to expect from Donald Trump when he goes crypto?



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China

China May Be On the Verge of Ending Its Bitcoin Ban

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1 week ago

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December 18, 2024

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Look, I think it’s only a matter of time before China pulls a complete 180 on its Bitcoin ban. Yes, they outlawed trading and mining back in 2021, but honestly, a lot has changed since then — especially this year. Bitcoin’s momentum globally has been insane.

We’ve seen US President-Elect Donald Trump calling to stockpile Bitcoin; Bitcoin ETFs get approved, Fed Chair Jerome Powell calling Bitcoin “digital gold,” Larry Fink flipping pro-Bitcoin, and even Putin saying nice things about it. With all of this happening, I wouldn’t be shocked if China has already started quietly stacking sats (buying bitcoin).

Here’s why I think that: China doesn’t like to announce what it’s doing beforehand — it’s just not how they operate. Former Binance CEO CZ talked about this recently at the Bitcoin MENA conference in Abu Dhabi, saying that while the US loves to make big public statements about upcoming policies (like Trump announcing Bitcoin plans to court voters), Asian countries prefer to move in silence.

And let’s not forget China doesn’t have elections. They don’t need to win over public opinion like Trump does. If they’re making moves with Bitcoin, they’ll do it quietly — and we’ll find out when they’re ready to make it official.

Now, with Trump’s big push for Bitcoin and crypto, I can’t see China sitting on the sidelines for too long. This is turning into a global race, and if China wants to stay competitive, they can’t afford to miss the Bitcoin train. My gut tells me they’re already planning to unban Bitcoin and crypto — and I wouldn’t be surprised if it happens as early as Q1 next year, especially if Trump takes office.

Another big hint? Hong Kong. China has a long history of using Hong Kong as a sandbox to test things before rolling them out on the mainland. And this year, we’ve seen Hong Kong make major moves — approving Bitcoin and crypto ETFs and greenlighting more crypto exchanges. Let’s be real: this isn’t a coincidence. They are planning to eliminate crypto taxes for institutions. I think China is watching carefully, and these are early steps toward a broader shift.

In my opinion, China has likely been quietly accumulating bitcoin all along. When the time is right, they’ll unban it — and not just to compete with the US, but to lead. Watch this space. I think it’s going to happen much sooner than most people expect.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.



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