U.S. Representative French Hill (R-AR) recently shared his thoughts on the SEC during an interview with the Thinking Crypto podcast. He believes that the SEC needs new leadership next year, no matter who wins the White House.
Hill, along with other Republican lawmakers, has criticized SEC Chairman Gary Gensler for his actions over the past few years. They feel he hasn’t provided a clear regulatory framework for digital assets, which is crucial as cryptocurrency adoption continues to rise.
In fact, the U.S. ranks fourth in the 2024 Global Crypto Adoption Index by Chainalysis, trailing behind India, Nigeria, and Indonesia. This shows just how important clear regulations are becoming.
Rep. Hill pointed out that Gensler's approach, which he described as "fear-mongering," is not only unconstitutional but also misuses the SEC's authority. He suggested that the SEC should consider exemptive relief for new industries like cryptocurrency and take a more pro-innovation stance.
These comments come after Ripple Labs' CEO, Brad Garlinghouse, predicted that Gensler would soon leave his position. According to him, changes at the SEC are likely, regardless of the election outcomes.
Back in late September, Gensler faced tough questions during a nearly four-hour Senate session. He defended his record on crypto regulation and denied knowing about “Operation Choke Point 2.0.” This term refers to a theory suggesting a coordinated effort to hinder the growth of the American crypto industry.
During this session, several members of the House Financial Services Committee, mostly Republicans, harshly criticized Gensler’s policies. Rep. Tom Emmer even called him the most destructive and lawless SEC Chairman in history.
As the presidential election approaches, Gensler's future at the SEC remains uncertain. If Vice President Kamala Harris wins, he may continue to receive support as a Democratic appointee. However, reports indicate that Harris’ donors have asked for Gensler's removal to improve relations with the cryptocurrency sector.
On the other hand, Republican candidate Donald Trump has stated he would remove Gensler immediately if elected. Rep. Hill noted that it’s common for new presidents to ask for resignations from agency heads when they take office. If Gensler isn’t removed, his term is set to last until 2026.