Gensler Out, Atkins In as SEC Chair – What’s Next for Crypto?

The SEC's Crypto Wars 

The case against Gary Gensler’s reputation seems to have been growing throughout his time at the SEC since 2021, and now, with President Trump’s re-election, he is set to be replaced by Paul Atkins. The notorious SEC Chair will step down at the end of Biden’s term, effective January 20, 2025, by his own decision. But was he really the villain he’s often made out to be? What were his goals? And what does the future hold for the crypto industry in the coming years? Here’s Gary Gensler crypto stance analysis and more.  

In general, the U.S. crypto regulatory challenges actually predate Gensler’s tenure, with one of the SEC’s first high-profile cases targeting Block.one, the company behind the EOS blockchain. In 2019, the SEC charged Block.one with conducting unregistered security offerings related to its EOS tokens. The company had raised over $4 billion through its ICO (Initial Coin Offering), making it one of the largest ICOs in the history of crypto at the time. 

The SEC accused Block.one of violating securities laws by failing to register the offering. Block.one settled with the SEC, agreeing to pay a fine of $24 million. 

In 2020, the agency filed another major lawsuit, this time against a popular social media and instant messaging (IM) service Telegram, accusing the company of conducting an unregistered securities offering related to its Gram token. Telegram had raised around $1.7 billion, but due to the lawsuit, was forced to abandon the Gram token launch. The company settled with the SEC, agreeing to return $1.2 billion to investors and pay an $18.5 million penalty. However, the company never managed to launch the Gram token, as the SEC’s legal action halted the project.

In the same year, Ripple Labs was accused of using the XRP token as an unregistered security to raise funds. In August 2024, a judge found Ripple liable for $125 million. It remains unclear how the long-running legal battle will proceed under the leadership of the new SEC chair, Paul Atkins. Ripple Labs CEO Brad Garlinghouse commented in a December 4th X post,  saying, “Paul Atkins at the helm of the SEC will bring common sense back to the agency.”

Gary Gensler cryptocurrency policies at the SEC

The year 2021 marked a new chapter as Gensler took charge of the agency. However one of the agency’s major actions came a few years into his tenure, when the SEC took action against Kraken in 2023. The SEC accused Kraken of operating an unregistered securities exchange by facilitating trading of digital assets that were classified as securities. 

Kraken, in a surprising move, settled with the SEC for $30 million, agreeing to cease its crypto staking services for U.S. customers and paying a fine. 

Binance, the world’s largest crypto exchange, found itself in the SEC's crosshairs shortly thereafter. In 2023, the agency sued the platform for operating an unregistered exchange and for allegedly offering unregistered securities to U.S. investors. The case marked a turning point in Gensler’s push to bring greater oversight to the crypto space, with the SEC targeting Binance’s operations not just in the U.S., but globally. The platform, facing mounting legal challenges, vigorously denied the charges, signaling that this could become one of the most high-profile legal battles the SEC had ever pursued.

In 2024, the SEC also filed charges against Coinbase, the largest publicly traded crypto exchange in the U.S. Coinbase was accused of operating as an unregistered securities exchange by allowing the trading of various tokens. However the company, has publicly resisted the SEC’s assertions, arguing that the agency’s stance could undermine the innovation the U.S. market had seen in the crypto space. 

In October 2024, Brian Armstrong, CEO of Coinbase, published a compilation of conflicting statements made by the SEC over the years. The issues raised included the SEC’s stance on whether digital assets like Bitcoin are considered securities, whether the agency has the authority to regulate crypto exchanges, and whether existing laws provide clear guidance.

In general, over the past few years, the SEC has taken enforcement actions against some of the biggest names in the crypto industry, including North America's largest exchange, Coinbase, as well as decentralized exchange Uniswap, blockchain-based video streaming platform Lbry, Web3 game developer Immutable, and MetaMask wallet creator Consensys, among others. In each case, the SEC argued that many cryptocurrencies qualify as securities and that their developers must register the tokens with the agency. 

The SEC’s impact on blockchain innovation was such that it has driven many crypto firms abroad over the past few years.

Will things change once Paul Atkins, nominated by Trump, becomes Chair?

Trump, Paul Atkins, and the Future of Crypto: What’s Next?

On July 27, Trump promised to fire Gensler on day one if he's reelected. He also pledged to appoint a chair who believed America should "build the future, not block the future." By early December 2024, as of this writing, it was confirmed that the president-elect had nominated former SEC commissioner Paul Atkins to head the agency.

Atkins’ potential appointment comes amid growing speculation that Trump’s administration could shift cryptocurrency regulatory oversight from the SEC to the Commodity Futures Trading Commission (CFTC). Such a move would represent a major policy shift with far-reaching implications for the crypto industry. 

If Atkins takes over as SEC chair following Gary Gensler’s resignation in January 2025, it could signal a shift in U.S. crypto regulations—one that encourages innovation instead of hindering it.

“We have the first Bitcoin president going to the White House, which is why we saw a new all-time high last night,” Bitcoin influencer Anthony Pompliano said in a November 6th X post.

Trump’s victory could mark a positive turning point for the U.S. cryptocurrency industry, as he has consistently expressed his support for crypto, positioning himself as a pro-crypto candidate. Throughout his campaign, the president-elect pledged to end the "war on crypto" and promised to make the U.S. the "crypto capital of the world" if elected.

Teen Bitcoin millionaire Erik Finman expressed strong optimism about this win, talking to the media platform Cointelegraph and predicting it would turn the U.S. into a pro-crypto environment and lead to a massive influx of investment in the crypto markets. Finman argued, “His policies will ignite the crypto market, fueling massive growth across the board.”

“If Trump wins, I believe Bitcoin could hit $100,000 during his second term.” As it turns out, Finman’s prediction was spot on.

Although Donald Trump wasn’t always a cryptocurrency advocate, the crypto community rallied behind him as a pro-crypto candidate during the 2024 election.

Trump's campaign garnered support from prominent figures in the crypto space, including Cardano founder Charles Hoskinson, BitGo CEO Mike Belshe, Tron founder Justin Sun, and Bitcoin Foundation founder Charlie Shrem. Additionally, the founders of major U.S. crypto exchanges, such as Gemini and Kraken, publicly endorsed Trump, contributing millions to back him as the "only pro-crypto candidate." 

In line with his stance on Bitcoin, Trump made several commitments to U.S. crypto miners, expressing his support for the industry and his goal of positioning the U.S. as a leader in Bitcoin mining. 

“His victory could indicate a favorable shift for the U.S. cryptocurrency industry, given his consistent support for crypto and his positioning as a pro-crypto candidate.

“I think this is incredibly bullish for digital assets,” said Michael Saylor, CEO of MicroStrategy.