SEC Chair Gensler Admits to Never Owning Crypto Ahead of Resignation and Ripple Deadline

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Four business days before his resignation on Inauguration Day, SEC Chair Gary Gensler, in an interview with CNBC, shared his thoughts on his time at the agency and his stance on the cryptocurrency market.

Regarding Bitcoin, Gensler stressed that the SEC has never classified it as a security. He described Bitcoin as a highly speculative and volatile asset but noted its global appeal, comparing it to gold in terms of its long-standing value and widespread interest. He also suggested that, like gold, Bitcoin might continue to play a role in the future of global markets, though other assets could emerge as alternatives.

Gensler pointed out that for the many other cryptocurrency projects in existence, they must demonstrate clear use cases and strong fundamentals to remain viable in the long term. Without these, he warned, they are unlikely to succeed. The SEC chair also clarified that he has never owned any cryptocurrencies and has consistently maintained this stance for the past seven or eight years.

His predecessor, Jay Clayton, who is set to return in the Trump Administration, brought about 80 cases to protect investors. Gensler said that the SEC’s role is to enforce laws, ensuring transparency and protecting against fraud and manipulation. Unfortunately, he said that there has been a lot of this in the crypto space, especially with crypto exchanges that not only acted as platforms but also traded against their own customers.

Paul Atkins is set to replace Gensler. Atkins has been vocal about the need for a clear regulatory framework for cryptocurrencies and blockchain technology. As of recent discussions, he has been seen as more favorable toward a pro-crypto environment than the current SEC chair, whose regulatory stance on cryptocurrencies has been more stringent.