When will Gensler follow suit as SEC executives begin to decline?

Just over a week has passed since Gary Gensler, the current president of the US regulator, and the other four commissioners of the US Securities and Exchange Commission (SEC), were reprimanded before the Financial Services Committee of the lower house of Congress. And we already have the first cases.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, is set to leave his position after working in that securities regulatory agency office for just over three years.

As reported on the SEC’s official website, Grewal will be replaced by the division’s current deputy director, Sanjay Wadhwa, who will assume the position of interim director of the agency. He guided Grewal every step of the way and executed “the SEC’s compliance agenda.”

Grewal’s departure was announced a week after Gary Gensler, the current chairman of the SEC, was reprimanded along with the other four commissioners in Congress.

For many in the Bitcoin and cryptocurrency industry, the name Gurbir S. Grewal is not strange at all. Source: CityBiz.

There, Gensler and his team were called in to verify whether the SEC president’s actions had been carried out represent a violation of the Civil Service Reform Act 1978. If so, The former banker could be removed from office.

During that hearing, held on September 24, Gensler faced harsh questioning from some members of Congress. This is the case of Tom Emmer, for whom the civil servant has behaved as “the most destructive and anarchic SEC chairman in history” for his “intimidatory regulation” of the emerging cryptocurrency sector.

According to that congressman, Gensler has created a truly hostile environment for the market, forcing the migration of companies to places friendlier to cryptocurrencies, outside the North American country.

One of those who led actions against bitcoin companies is leaving

For many in the industry Bitcoin and cryptocurrencies, the name Gurbir S. Grewal is not strange at all. He has a compromising track record.

The official, who will leave the SEC on Oct. 11, has approved no fewer than 100 enforcement actions against companies in the emerging sector since taking office, according to the agency’s own count.

The situation has cost costs billions of dollars in fines, as well as hundreds of accusations, arrests, dismantling of platforms and countless investigations.

Under Gensler’s leadership, the SEC has waged a crusade against cryptocurrency companies. This has led to sanctions, lawsuits, and accusations against companies in the sector, including the operators of the world’s largest crypto asset exchanges such as Binance and Coinbase.

Binance founder Changpeng Zhao was arrested, fined, and charged by the SEC and other US agencies. Source: @Mercy_arsenal.

Gurbir S. Grewal obviously encouraged these actions. He has repeatedly claimed that the SEC’s actions against the cryptocurrencies They try to punish the act that it failed to provide “critical protections” for users and violated applicable provisions of the federal securities laws.

Grewal’s work was praised by Gensler himself, who said the official “has led a division that has acted without fear or favor and followed the facts and the law wherever they lead.”

When is Gensler coming out?

Now, with the departure of Gurbir S. Grewal from the SEC, the debate over the possibility of Gary Gensler also leaving the organization is increasing. We can’t forget that for industry leaders like Brad Garlinghouse, CEO of Ripple Labs, Gensler can be removed from office at any time j knows who knows in next month’s US presidential election.

But how close is that scenario? Answering it is not so easy, because American dynamics are constantly fluctuating and, moreover, are a reality subject to a series of future events that will make history.

For example, Gensler’s tenure at the SEC is primarily dependent on the presidential election in the United States, will take place on Tuesday, November 4. This election event will determine whether this official will be able to serve at the SEC for some time, or whether, on the contrary, he will be dismissed.

To be more objective, if Republican and former President Donald Trump wins in November, Gensler will most likely be fired. The candidate himself he said it a few weeks ago in the context of the Bitcoin 2024 event, when he declared that, if he wins the election, “I will fire Gary Gensler from day one and elect a new president of the SEC.”

If Democrat Kamala Harris wins, Gensler could not only stay in the SEC for a while longer, but even position in the sphere of political power United States. It is said that Harris did that the official could nominate as finance minister if he wins the elections.

If Gary Gensler were appointed Treasury Secretary, he could step up financial regulation of the cryptocurrency sector. This could lead to greater regulatory pressure than is currently the case, potentially limit innovation and market growth, and possibly moving operations outside the U.S., due to perceptions of regulatory hostility, which could discourage companies and investors.

The way Congressman Wiley Nickel sees it, as Gensler has had a “misguided approach to regulation through enforcement” and, as a result, “has hurt the economy and has been rejected by both Democrats and Republicans in Congress.”

Another factor that will determine Gensler’s durability at the SEC will be the decision of the U.S. Congress’s Financial Services Commission. As mentioned at the beginning of this article, members of Congress want to know if the official’s actions violate the laws. And if so, remove it, according to the case law of the North American nation.

Gensler and four SEC commissioners faced scrutiny before Congress last week. Source: CNBC/YouTube.

But there is still some way to go, given that members of Congress are reviewing all documentation related to the SEC’s decisions to determine whether that agency’s contracting processes are legitimate. A review that could take a few more weeks.

Moreover, there is no recent information about conflicts, scandals, or political changes that directly threaten his position. And this makes The chance that Gensler will be removed from office soon does not seem high.

However, in the field of politics, situations can change quickly within a month, so any significant development in the relationship with Congress, in its management of the SEC, or in the general political landscape; could change this probability.

SOURCE

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top