A little more than a week has passed since Gary Gensler, the current president of the US regulator, and the other four commissioners of the US Securities and Exchange Commission (SEC), were rebuked before the Financial Services Committee of the Lower House of the Congress, and we already have the first fallen. Gurbir S. Grewal, who serves as director of the SEC's Division of Enforcement, will leave his position after just over three years of service in that office of the securities regulatory agency. As reported on the SEC's own official website, Grewal will be replaced by the current deputy director of the division, Sanjay Wadhwa, who will assume the position of interim director of the office. He has accompanied Grewal in every move, executing “the SEC's compliance agenda.” Grewal's departure was announced a week after Gary Gensler, the current chairman of the SEC, was rebuked, along with the other four commissioners, in the US Congress.
For many in the Bitcoin and cryptocurrency industry, the name Gurbir S. Grewal is not at all strange. Source: CityBiz. There, Gensler and his team were summoned to see if the SEC chairman's actions represented a violation of the Civil Service Reform Act of 1978. If so, The former banker could be removed from office.
At that hearing, which was held on September 24, Gensler received harsh questions from some congressmen. This is the case of Tom Emmer, for whom the official has behaved like “the most destructive and anarchic SEC president in history” for his “harassment regulation” that he maintains over the emerging cryptocurrency sector. In the opinion of that congressman, Gensler created a truly hostile environment for the market, which has forced the migration of companies to places that are more friendly to cryptocurrencies, outside the North American country.
One of those who led actions against bitcoin companies leaves
For many in the Bitcoin and cryptocurrency industry, the name Gurbir S. Grewal is not at all strange. He has a compromising record. This official, who will leave the SEC as of October 11, has authorized no less than 100 enforcement actions against companies in the emerging sector since taking office, according to the agency's own count. The situation has cost billions of dollars in fines, as well as hundreds of accusations, accusations, arrests, dismantlements of platforms and countless investigations. Indeed, under Gensler's direction, the SEC has carried out a crusade against cryptocurrency companies. This has led to sanctions, lawsuits and accusations against companies in the sector, including the operators of the largest cryptoasset exchanges in the world, such as Binance and Coinbase.
The founder of Binance, Changpeng Zhao, was arrested, fined and charged by the SEC and other US agencies. Source: @Mercy_arsenal. Gurbir S. Grewal, of course, has encouraged these actions. He has repeatedly alleged that the SEC's actions against the cryptocurrency industry They seek to punish the act that “critical protections” for users were not provided and applicable provisions of the federal securities laws were violated. Grewal's work has been praised by Gensler himself, who states that this official “has led a Division that has acted without fear or favor, following the facts and the law wherever they lead.”
When will Gensler come out?
Now, with the departure of Gurbir S. Grewal from the SEC, the debate is increasing about the possibility of Gary Gensler also leaving the organization. It must be remembered that, for industry leaders, such as Brad Garlinghouse, CEO of Ripple Labs, Gensler will be removed from office at any time and whoever wins in next month's US presidential election. But how close is that scenario? Answering it is not so simple, since the American dynamic constantly fluctuates and, furthermore, it is a reality that is subject to a series of future events that will make history. For example, Gensler's tenure at the SEC is subject, in the first instance, to the United States presidential elections, to be held next Tuesday, November 4. This electoral event will define whether this official will be able to serve some more time in the SEC, or if, on the contrary, he will be fired. To be more objective, if Republican and former President Donald Trump wins in November, Gensler will most likely be fired. The candidate himself said it a few weeks ago, within the framework of the Bitcoin 2024 event, when he stated that, if he wins the elections, «from day one I will fire Gary Gensler and choose a new president of the SEC.» Now, if Democrat Kamala Harris is victorious, Gensler could not only stay in the SEC for a while longer, but even could gain position in the sphere of political power United States. Harris could reportedly nominate the official as Treasury Department secretary if she wins the election. If Gary Gensler were appointed Treasury Secretary, he could intensify financial regulation over the cryptocurrency sector. This could lead to greater regulatory pressure than currently, potentially limiting innovation and market growthand possibly displacing activities outside the US, due to a perception of regulatory hostility that could disincentivize companies and investors. As Congressman Wiley Nickel sees it, if Gensler has had a “misguided approach to regulation through enforcement” and, as a result, “has hurt the economy and been rejected by both Democrats and Republicans in Congress.” Another factor that will determine Gensler's permanence at the SEC will be the decision made by the Financial Services Commission of the US Congress. As mentioned at the beginning of this article, congressmen want to know if the official's actions violate the laws. And if so, remove him, according to the jurisprudence of the North American nation.
Gensler and four SEC commissioners came under scrutiny in front of Congress last week. Source: CNBC/YouTube. But there is still a long way to go for this, considering that congressmen are reviewing all the documentation related to the SEC's decisions to check whether that agency's hiring processes are legitimate. A review that could extend for a few more weeks.
Furthermore, there is no recent information of conflicts, scandals or political changes that directly threaten his position. And this makes The likelihood of Gensler being removed from office any time soon does not appear high.
However, in the realm of politics, situations can change quickly in a matter of a month, so any significant development in the relationship with Congress, in his management of the SEC, or in the overall political landscape; could alter this probability.