Once hailed as a financial expert with impressive credentials, Gensler quickly became known as a “crypto-crusher.” Under his watch, the SEC began cracking down on more cryptocurrencies than a gamer on a caffeinated side quest. One Bitcoin holder famously said, “If Gensler could regulate monopoly money, he would.”
Trump’s bold promise: “I’ll fire Gensler.”
Meet President-elect Trump with an agenda that is anything but subtle. During the 2024 campaign, Trump promised to remove Gensler from his position if elected. At the Bitcoin 2024 conference, he declared that he would “fire SEC Chairman Gary Gensler on day one,” making it clear that he believes Gensler’s approach to cryptocurrencies has gone too far. The pledge resonated within the cryptocurrency community, which has long suffered from Gensler’s strict regulations. Trump, a vocal advocate for the ‘freedom’ of financial markets, recently seemed to have found a bureaucratic target.
— Stephen (@Dogetoshi) November 6, 2024
When asked by Bloomberg about Trump’s threats to his position, Gensler kept his response diplomatic, even though the awkwardness was hard to miss. He decided not to engage directly and simply said, “Next question,” meaning he wasn’t bothered by the threat. Gensler has emphasized his commitment to protecting investors and staying true to the SEC’s mission, but his supporters may be looking at his office chair with concern.
Conflict between regulation and deregulation
This Trump-Gensler standoff is shaping up to be an ideological battle between Gensler’s strict, structured regulatory approach and Trump’s vision of deregulated freedom. While legal experts debate the validity of Trump’s promises (it turns out that firing the SEC chairman isn’t as simple as sending out a pink slip), the cryptocurrency community is watching with popcorn in hand, and their old nemesis has actually emerged. They want to see if they can do it. Absent.
For now, Gensler remains the SEC chairman, but with Trump re-elected, his base may begin to shift.