Gary Gensler Reflects on Crypto’s Role in the Presidential Election
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With only six days left in office, SEC Chair Gary Gensler addressed concerns about crypto’s influence on the 2024 US presidential election.
In an interview on January 14th with CNBC’s Andrew Ross Sorkin on Squawk Box, Gary Gensler stated, “I think this election, though as you point out, there was money raised from the crypto field, I don’t think that’s what this election was about.”
Gensler on Crypto’s Role in the 2024 Election
Gary Gensler dismissed claims that crypto-focused voters or financial contributions from digital asset interest groups played a decisive role in President-elect Donald Trump’s victory. Despite increased political activity within the crypto sector, he emphasized that these contributions likely did not shape the election’s outcome.
Gary Gensler says the presidential election wasn't about crypto money. The SEC chair is stepping down in six days, which just so happens to be the same day Donald Trump is set to be inaugurated as president in Washington, DC. 🤭
— Gello C. (@gelloagenC) January 15, 2025
Gary Gensler’s time as SEC chair has been marked by what many believe to be rigorous enforcement against crypto firms, sparking significant industry criticism.
Under his leadership, the SEC pursued high-profile cases against Coinbase, Binance, and Ripple Labs, accusing them of violating securities laws.
“This field, the crypto field, a highly speculative field, has not been compliant with various laws, whether it’s any money laundering laws, sanctions laws, or in our case, securities laws,” Gensler reiterated during the interview.
These comments align with his previous stance on prioritizing investor protection while tightening regulations for the crypto industry.
The crypto community has frequently expressed frustration over what it perceives as a lack of clear guidelines.
Ripple CEO Brad Garlinghouse criticized Gensler in a December interview with 60 Minutes, stating that the regulatory environment under his leadership pushed pro-crypto political action committees like Fairshake to spend millions lobbying for industry-friendly policies.
Last week, @60Minutes interviewed me about crypto, the push for regulatory clarity and how the industry banded together to advocate for pro-innovation candidates (on both sides of the aisle) through Fairshake PAC. Full episode to be aired soon – stay tuned for details
— Brad Garlinghouse (@bgarlinghouse) November 25, 2024
What Lies Ahead
As Gensler prepares to step down on the same day Donald Trump is inaugurated, questions remain about the future of crypto regulation.
Trump announced his intent to nominate former SEC commissioner Paul Atkins as the next SEC chair. Atkins is widely regarded as being more favorable to crypto interests, signaling potential policy shifts in the regulatory landscape.
Coinbase and Ripple’s ongoing legal battles with the SEC highlight the deep rift between regulators and the crypto industry.
Coinbase has appealed a 2023 enforcement action and filed Freedom of Information Act requests, alleging a coordinated effort by US authorities to hinder crypto firms.
Similarly, Ripple has contested a court ruling holding it liable for $125 million in damages while seeking clarity on its future operations.
President-elect Donald Trump is expected to act quickly on crypto policies, including revising the 2022 SEC directive, SAB 121, which critics argue stifles crypto adoption. Reports suggest this change could come through an executive order on his first day in office.
