U.S. Representative French Hill (R-AR) said in an interview with the Thinking Crypto podcast that the SEC should have new leadership next year—regardless of which party controls the White House.
Hill and other Republican lawmakers have criticized Gensler for the SEC’s actions in recent years and for not providing a clear regulatory framework for digital assets.
Gensler’s approach to digital assets and blockchain has faced scrutiny as the U.S. experiences increased cryptocurrency adoption. The U.S. ranks fourth on the 2024 Global Crypto Adoption Index by blockchain analytics firm Chainalysis, following India, Nigeria and Indonesia.
Rep. Hill said Gensler’s “fear-mongering” at the SEC is unconstitutional and misuses the agency’s regulatory authority. He suggested that the SEC employ exemptive relief for new industries like cryptocurrency and adopt a pro-innovation stance.
The comments follow Ripple Labs’ CEO Brad Garlinghouse recent prediction that Gensler would leave his seat at the SEC. According to the businessman, the SEC’s chairman will soon change regardless of the results of the elections.
Back in late September, Gensler appeared before the Senate alongside all five voting members of the SEC. During the nearly 4-hour-long session, he batted away attack after attack on his crypto regulation record and went as far as to deny previous knowledge of the term “Operation Choke Point 2.0.”
The term in question refers to a popular theory that there is a coordinated government effort to prevent the American crypto industry from developing and taking root.
The session saw multiple—mostly, but not exclusively, Republican—House Financial Services Committee members condemn Gensler’s crypto policies to his face in particularly harsh terms. “We could not have had a more historically destructive or lawless Chairman of the SEC,” Rep. Tom Emmer said at the time.
Gensler’s future at the SEC remains uncertain as the U.S. presidential election approaches. As a Democratic appointee, he may receive continued support if Vice President Kamala Harris wins the presidency. Harris’ donors reportedly requested the removal of Gensler from the commission and appoint new leadership to improve relations with the cryptocurrency industry.
Republican candidate Donald Trump has stated he would remove Gensler immediately if elected. Rep. Hill noted that it is common for new presidents to seek resignations from some agency heads upon taking office. If not removed, Gensler’s term is set to run until 2026.
Edited by Stacy Elliott.
