Malaysia
Singapore
Philippines
Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.
The Blockchain Association (BA), a leading advocacy group in the blockchain and cryptocurrency sectors, recently revealed that crypto firms have incurred substantial legal expenses, amounting to approximately $426 million (or Rp6.7 trillion), due to various lawsuits filed by the U.S. Securities and Exchange Commission (SEC). According to data released on October 31, 2024, the SEC has initiated 104 enforcement actions against the crypto industry from 2021 through 2023.
Since Gary Gensler assumed his role as SEC Chairman in April 2021, he has asserted that the majority of digital assets fall under the classification of securities, thereby making them subject to SEC regulations and registration mandates. This aggressive regulatory stance has considerably impacted crypto firms and platforms within the U.S., affecting major players such as Binance, Coinbase, and Kraken.
Who’s Gary Gensler
Gary Gensler currently serves as the Chairman of the U.S. Securities and Exchange Commission (SEC), having been nominated by President Joe Biden on February 3, 2021, and confirmed by the Senate on April 14, 2021. He was formally sworn into the role on April 17, 2021. The SEC, established to “protect investors, ensure fair, orderly, and efficient markets, and facilitate capital formation,” aims to bolster public trust in financial markets.
Before heading the SEC, Gensler led the financial oversight transition team for President Biden. His public service history includes roles during the Clinton administration, where he held titles such as Assistant Secretary of the Treasury and Under Secretary of the Treasury for Domestic Finance. Gensler also played a significant advisory role to U.S. Senator Paul Sarbanes in shaping the Sarbanes-Oxley Act of 2002.
Under President Obama, Gensler chaired the Commodity Futures Trading Commission (CFTC) from 2009 to 2014, where he led reforms in the $400 trillion swaps market. His work at the CFTC established his reputation as a determined and rigorous regulator.
Top Priority as SEC Chairman
During his first year in office as SEC Chairman, Gary Gensler focused on oversight in areas such as cryptocurrencies, insider trading, share buybacks, money market funds, and special purpose acquisition companies (SPACs).
As SEC Chairman, Gensler also expanded the whistleblower program established under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The program provides incentives to individuals who provide important information regarding illegal practices, thereby increasing transparency and accountability in the financial markets.
Potential SEC Reforms Under Trump’s Presidency
The cryptocurrency industry celebrated following Trump’s victory in the U.S. elections on November 6, as the Republican win sparked hopes for more crypto-friendly regulations over the next four years, extending through 2028.
Steve Milton, CEO of the decentralized finance (DeFi) app Fintopio and former Global Vice President of Marketing and Communications at Binance, suggested that the Republican win could also lead to reforms within the U.S. Securities and Exchange Commission (SEC).
Previously, former US President Donald Trump, who is again running for the Republican presidential nomination, stated that he would fire Gensler as soon as possible in favor of clear crypto regulations for the future. This is also in favor of the release of new ETFs into the crypto market to support increased liquidity.