The post Regulatory Uncertainty May Persist for Bitcoin as Gensler Leaves SEC Amid Ongoing Lawsuits Against Crypto Firms appeared on BitcoinEthereumNews.com.

As Gary Gensler prepares to step down as SEC Chair, the future of cryptocurrency regulation hangs in the balance, prompting calls for clearer legislative guidelines. The ongoing challenges faced by crypto firms may persist, as many experts emphasize the necessity for Congress to clarify how existing securities laws apply to digital assets. Tyler Winklevoss remarked that “no apology could undo the damage” caused by Gensler’s tenure, underscoring the discontent in the crypto community. Gary Gensler’s departure from the SEC opens discussions on cryptocurrency regulation, yet lawsuits may linger as Congress must clarify securities laws for digital assets. Gensler’s Legacy and Its Implications for Crypto Regulation Gensler’s leadership at the SEC has been pivotal in shaping the regulatory landscape for cryptocurrencies, largely through a regulation by enforcement (RBE) strategy. His approach has left many in the crypto sector frustrated, as they contend that it has created an environment of uncertainty and legal risk. Despite criticisms, Gensler’s enforcement actions were seen by some as a necessary step to establish a framework for protecting investors in a rapidly growing and evolving market. The lack of clear guidance and proactive regulations, however, has led to a dichotomy: industry leaders push for defined regulatory pathways, while the SEC’s focus on enforcement marks a historic precedent in U.S. financial regulation. A History of Regulation by Enforcement The concept of regulation by enforcement is not unprecedented; it has been utilized across various sectors whenever new technologies emerge. For instance, professors from universities have pointed out that historically, agencies have grappled with the challenges posed by new innovations by deploying enforcement actions as a means of regulatory clarity. Experts highlight that Gensler’s tenure has exemplified a heightened reliance on this strategy, which may yield long-term complications for the digital asset ecosystem. As Carol Goforth aptly put it, the…

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Filed under: News - @ November 26, 2024 4:26 pm