The cryptocurrency industry’s millions of dollars poured into recent elections may yield its most significant victory: The departure of US Securities and Exchange Commission Chair Gary Gensler. Gensler, a former Goldman Sachs banker, oversaw a stringent regulatory crackdown on the Cryptocurrency sector, launching numerous cases against major and minor crypto companies and traders, including Coinbase Global and DRW Holdings.
Republican Party’s Trump’s decisive win signals a potential shift in crypto enforcement. During campaigning, Trump had vowed to fire Gensler on the very first day after taking office.
Despite its legal wins, aligning decades-old securities laws with the nascent digital asset class, the SEC secured substantial penalties. Notably, they imposed a $4.5 billion fine on Terraform Labs and its founder, Do Kwon.

New regulation for Bitcoin and Crypto industry

The next SEC chair is expected to implement new regulations, either modifying existing securities laws or enabling digital asset companies to adhere to existing rules that Gensler has criticized.
With the Senate now solidly Republican, bipartisan crypto legislation supporting this goal gains momentum.
Jack Inglis, CEO of the Alternative Investment Management Association, told Bloomberg that the industry anticipates a more constructive regulatory approach under the Trump administration and new Congress. This could lead to policies recognizing the need to integrate crypto into the broader financial services framework while accommodating its technological differences.
The SEC’s focus on classifying crypto products as securities under the Howey Test has been controversial. The SEC’s Inspector General’s report highlights the substantial increase in crypto-related complaints and referrals, indicating a growing industry presence and associated concerns.

How will SEC chief go — resign or may be fired

Gensler’s departure, whether through resignation or firing, could significantly impact the SEC’s crypto enforcement efforts. According to the Bloomberg report, while immediate resignation is expected by some, like Chris Iacovella, president of the American Securities Association, others believe Gensler may still pursue ongoing cases against companies like Uniswap and OpenSea.
However, other enforcement actions might be slowed down, given the potential for an incoming SEC chair, particularly one aligned with Trump’s shrinking government stance, to scrutinize aggressive actions taken by agency staff in the interim.