Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), surprised many X users with his announcement of resignation, only to reveal that he is “not done” yet. In a post on April 17, Gensler expressed his gratitude for serving as the SEC Chair and acknowledged the dedication of the SEC staff in serving both investors and issuers. He then mentioned the more than 2,000 enforcement actions and rules that the SEC had accomplished under his leadership, leading many to believe that he was resigning. However, Gensler clarified in a subsequent post that he and the SEC still have more work to do.
Gensler’s posts quickly went viral, garnering over 1.1 million views on X. Many users found his announcement to be a clever troll that initially seemed like a resignation but turned out to be a playful twist. Some even speculated that Gensler’s penchant for trolling was intentional.
Scott Johnsson, a general partner at Van Buren Capital, pointed out that Gensler’s emphasis on the number of enforcement actions might indicate a lack of focus. He compared it to the Department of Justice or Bureau of Prisons highlighting the number of incarcerations, suggesting that Gensler’s approach may not be the most effective.
Under Gensler’s leadership, the SEC saw a significant increase in crypto-related enforcement actions, reaching a 10-year high. The SEC filed 46 enforcement actions against crypto firms, doubling the previous year’s number. This approach has drawn criticism from industry executives and lawmakers who accuse Gensler of regulating crypto through enforcement rather than clear guidelines. The SEC has filed numerous lawsuits against crypto companies, claiming that many cryptocurrencies are securities.
In response to Gensler’s posts, the crypto community on X fired back in their own way. The replies to Gensler’s thread received more engagement than the original post, with some garnering three times the number of likes. This playful response reflects the ongoing tension between Gensler and the crypto industry.
Gensler’s tenure as SEC Chair began on April 17, 2021, after being nominated by U.S. President Joe Biden. He could serve as chair until April 17, 2026, but it is customary for the SEC chair to resign if a new president is elected. With the possibility of a rematch between Biden and former president Donald Trump, Americans will head to the polls on November 5 to cast their votes.
In the world of crypto regulation, Gary Gensler’s role as SEC Chair is pivotal. His approach to enforcement and his views on crypto’s potential for fraud and manipulation will continue to shape the regulatory landscape.