Shift in Crypto Regulation: Understanding the Impact of Gary Gensler’s Resignation
In a significant turn of events, Gary Gensler resigned as the chairman of the US Securities and Exchange Commission (SEC) in January 2025, following the inauguration of President Donald Trump. This move had far-reaching implications for the crypto industry, which had been subject to intense scrutiny and regulatory actions under Gensler’s leadership. The former SEC chairman’s approach to digital assets had been widely criticized, leading companies like Ripple Labs to fund political action committees (PACs) and support candidates with favorable views on the industry.
Following Gensler’s resignation, President Trump appointed SEC Commissioner Mark Uyeda as the agency’s acting chairman, marking a significant shift in the SEC’s policy on digital assets. The new leadership brought about a halt to years of investigations and enforcement actions, and the agency’s leadership was restructured to include only Republicans. This change in direction has sparked intense debate and raised questions about the potential impact on the crypto industry.
Dismissal of Crypto Investigations and Lawsuits
In the months that followed Uyeda’s appointment, the SEC dropped several high-profile cases against crypto companies, including a civil enforcement lawsuit against Coinbase that was originally filed in 2023. This move was seen as a significant reversal of the agency’s previous stance on digital assets. The SEC also dropped investigations into Robinhood Crypto and Uniswap Labs, and in March, Ripple CEO Brad Garlinghouse announced that the SEC would withdraw its appeal of an enforcement action against the payments company.
According to Consensys CEO, Joseph Lubin, the SEC’s new approach under Trump’s leadership means that crypto cases will be “dismissed or settled.” This shift in policy has been met with both praise and criticism, with some lawmakers questioning whether the agency’s actions are motivated by the president’s close ties to the crypto industry. Trump and his family have been open about their support for crypto firms, including World Liberty Financial, which launched its own stablecoin, and the president’s own memecoin, Official Trump (TRUMP).
SEC Holds Crypto Roundtables and Awaits Regulatory Clarity
In 2025, the SEC hosted a series of crypto roundtables, bringing together industry, legal, and policy experts to discuss topics such as financial privacy, digital asset custody, tokenization, and decentralized finance. The agency sought to gather opinions on how securities laws should be applied to the sector, but the discussions have been controversial, with some members of Congress working to pass comprehensive crypto legislation. The Digital Asset Market Clarity (CLARITY) Act, which aims to establish clear guidelines for financial regulators, including the SEC, has passed the House of Representatives but is currently delayed in the Senate.
The bill’s progress has been hindered by delays and disagreements, with Coinbase CEO Brian Armstrong withdrawing his support for the legislation. As the regulatory landscape continues to evolve, the crypto industry remains uncertain about the future of digital asset regulation. The SEC’s shift in policy under Trump’s leadership has significant implications for the industry, and the outcome of the CLARITY Act will be closely watched by investors, companies, and regulators alike.
All Democratic Commissioners Leave the SEC
The departure of Gary Gensler and former SEC Commissioner Jaime Lizárraga in January 2025 marked the beginning of a significant change in the agency’s leadership. Caroline Crenshaw, the only remaining Democratic commissioner, stayed on for 18 months past the official end of her term but eventually left the agency in January 2026. The lack of bipartisan balance in the SEC’s leadership has raised concerns about the agency’s ability to effectively regulate the crypto industry.
As the crypto industry continues to navigate the complex regulatory landscape, it is essential to stay informed about the latest developments and changes in policy. For more information on the SEC’s shift in crypto regulation and the potential impact on the industry, visit Cointelegraph.
Source: Cointelegraph
