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22 October, 2024

SEC Chair’s Birthday Wish to Bitcoin: More Regulation By Enforcement

22 October, 2024

Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), recently gave Bitcoin a ‘sweet sixteen’ birthday greeting, but with a twist. During a Bloomberg interview, he indicated that the SEC is not about to change its approach to crypto regulation, which relies heavily on enforcement actions rather than clear-cut rules. This stance has been a source of both criticism and uncertainty within the crypto industry.

Gensler’s comments, made on the 16th anniversary of Bitcoin’s white paper release, highlight the ongoing tension between the crypto industry and the SEC. While some view the SEC’s actions as necessary to protect investors, others argue that they stifle innovation and create a hostile regulatory environment. The SEC’s continued reliance on enforcement actions has led to a lack of clarity for crypto businesses, making it difficult for them to navigate the legal landscape and operate with confidence.

The crypto community is closely watching how the SEC’s approach to regulation unfolds, particularly in the face of calls for more transparency and clear guidelines. Whether the SEC will eventually shift its focus towards more traditional rulemaking remains to be seen, but for now, its ‘regulation by enforcement’ strategy continues to dominate the cryptocurrency landscape.