The Legacy of Gary Gensler: A Mixed Bag for Crypto

As Gary Gensler steps down from his role as SEC chair, the crypto industry is unlikely to mourn his departure. During his tenure, the SEC launched a series of attacks on digital asset companies, often with damaging and unfair consequences. Furthermore, Gensler failed to provide clarity for crypto companies seeking to operate within the law. At times, it seemed that Gensler, along with Senator Elizabeth Warren, was more interested in stifling the growth of the crypto industry than in providing regulatory support. However, it's essential to consider the broader context of Gensler's crypto legacy and acknowledge that he was not solely responsible for the lack of regulatory clarity. The absence of clear legislation on digital assets has been a longstanding issue, with Congress failing to pass any new laws in the 16 years since bitcoin's inception. While Gensler could have pushed for new legislation, he was not a member of Congress and cannot be held entirely accountable for this lack of progress. Gensler's tenure was also marked by several high-profile scandals, including the $8 billion FTX fraud, which he was required to address. The SEC's enforcement-first policy was often criticized as being overly aggressive, but it's worth noting that any SEC chair would have had to take action to address the widespread law-breaking that occurred during the last market surge. The presence of multiple regulators in the US, including the SEC and CFTC, has created confusion and uncertainty for the crypto industry. While Gensler has battled to assert the SEC's authority, the dual-regulator system is a longstanding issue that predates his tenure. In conclusion, while Gensler's departure may be welcomed by the crypto community, it's unlikely to mark the end of the industry's regulatory problems. The lack of clear legislation and the presence of multiple regulators will continue to pose challenges for the industry, regardless of who is at the helm of the SEC.