SEC's crypto regulations to see significant cuts under Trump as commission’s top boss looks at exit

With Donald Trump back in the White House, a major rollback in crypto regulations is expected. The crypto industry may have secured a major win this election season, not just with campaign investments but also with the anticipated exit of Gary Gensler, the US Securities and Exchange Commission (SEC) Chair.

Gensler has been the driving force behind a strict regulatory clampdown on digital assets, taking enforcement action against companies of all sizes, including giants like Coinbase.

Gensler’s time at the SEC has been marked by an aggressive push to enforce decades-old securities laws on digital assets, resulting in hefty fines, such as the $4.5 billion sanction imposed on Terraform Labs in April.

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Yet, critics have argued that many cases focused too heavily on technical registration issues rather than clear cases of fraud. Some experts believe that future enforcement should target only genuine violations, rather than penalising companies over regulatory hurdles that are nearly impossible to clear.

Trump has made his position on Gensler crystal clear. During a Bitcoin event in Nashville, he promised to dismiss the SEC Chair on his first day back in office. This pledge has raised hopes in the crypto community that a friendlier regulatory landscape may be on the horizon.

A new SEC Chair under Trump’s administration could aim to simplify rules for digital assets, moving away from outdated laws and toward more practical regulations that acknowledge the unique aspects of crypto.

The prospect of a Republican-controlled Senate further bolsters this outlook, with bipartisan legislation now more likely.

Industry insiders expect a more balanced approach, integrating crypto into traditional financial frameworks while accounting for its differences. The Alternative Investment Management Association, for example, sees this shift as a chance for smarter regulation that addresses crypto’s technological innovations rather than stifling them.

However, it won’t all change overnight. If Gensler chooses to step down before Trump’s inauguration, the SEC could face a deadlock, with commissioners split evenly along party lines. This would likely slow down any new enforcement initiatives.

Even so, there’s speculation that Gensler might try to push through cases against companies like Uniswap and OpenSea before stepping aside. Yet, SEC staff may hesitate to pursue aggressive actions with the looming arrival of a new administration likely to favour deregulation.

For now, the crypto sector is cautiously watching and waiting, hopeful that Trump’s presidency will mark the beginning of a new era in regulation — one that feels less like a crackdown and more like an overdue adjustment.