Farewell Gary Gensler: The SEC Chair's Crypto Comments Fall Flat

In a speech at NYU School of Law, SEC Chair Gary Gensler expressed his candid views on cryptocurrency, which were both expansive and damning. Unlike his usual cautious approach, Gensler's comments seemed to reflect a sense of freedom, unencumbered by the need for diplomacy. He asserted that cryptocurrencies, such as bitcoin and ether, are unlikely to be used for payments, citing the historical precedent of nation-states controlling money and the tendency towards a single national currency. Gensler's perspective is rooted in the past, drawing on 3,000 years of history, from Plato and Aristotle to the present day. While acknowledging the existence of fraud and scams in the crypto industry, he made the misleading claim that the leading figures in the field are either incarcerated or awaiting extradition. In reality, most industry leaders are actively building and innovating, with few looking to the likes of SBF as a guiding light. On the crucial questions of token securities and investment contracts, Gensler offered little hope for regulatory clarity or evolution, instead relying on the 80-year-old Howey Test. His comments have been met with disappointment and frustration, with SEC Commissioner Mark Uyeda describing Gensler's tenure as 'a disaster for the whole industry.' As Gensler's time in office draws to a close, his recent remarks have only served to underscore the industry's desire for a more forward-thinking and supportive regulatory approach.