Ever since the victory of Donald Trump in the recently held U.S. presidential elections, speculations are rife that Securities and Exchange Commission (SEC) Chairperson Gary Gensler, an otherwise antagonist figure in the crypto community, is going to resign before his term ends.
Gensler, who was known for his tough stance against the crypto firms in the U.S., has been at the receiving end of the community for months now. Trump has promised to fire him on day one of his office while many prominent figures including Tyler Winklevoss co-founder of Gemini, have termed him as pure “evil” and Bradley Tusk, the CEO of USK Venture called him the “the single worst regulator in crypto”.
Gensler is also facing a lawsuit filed by Republican attorneys from 18 states who have accused him and SEC of gross constitutional overreach in crypto-related regulations in the U.S.
Now what is for certain is that Gensler is going to lose his seat, however, many critics have also been demanding prison time for him, accusing him of using his arbitrary powers to target the crypto industry. Calls for boycotts against any organization associating with Gensler after his SEC tenure have gained traction online.
In this article, we will fact check the claims on social media that Gensler might possibly go to prison due to his actions as the chairperson of SEC.
Gary Gensler’s Tenure at SEC
Gary Gensler was nominated as the Chairperson of SEC by President Joe Biden in 2021 and he came on board with the reputation of a tough regulator. A former MIT professor and Goldman Sachs partner, Gensler was expected to be soft towards the evolving crypto landscape in the U.S. given his financial background.
However, his offensive take on crypto has put him at odds with crypto enthusiasts and entrepreneurs. Since Gary was confirmed as the SEC chair by U.S. Senate in 2021 the number of crypto-related enforcement cases has increased to a 10-year high as per Cornerstone Research.
According to the official report released by Cornerstone Research SEC brought 46 enforcement actions against crypto firms in 2023 double that of 2021 and highest since 2013. Moreover, the SEC enforced $281 million in monetary penalties for settlements and tripled the count of administrative proceedings from 2022.
During his tenure, Gensler led several high-profile enforcement actions in the crypto sector, including cases against Ripple, Coinbase, and Uniswap. He maintained that most cryptocurrencies are securities and stressed the need for regulatory oversight.
Will Gary Gensler Go to Jail: A Fact Check
As per the guidelines laid down for the SEC, the U.S. president has the power to appoint five commissioners to the SEC and designate one of them as the chairperson. However the president doesn’t have the power to fire the chairperson and the person might complete their five year term.
Another important thing to note is that Gensler and SEC are currently facing a lawsuit with civil action and not criminal one. Therefore, it is highly unlikely that Gensler will see jail time with this current lawsuit of constitutional overreach.
Moreover, the United States Criminal Justice System has provisions for legal action against federal officers; however, it is done only in cases of corruption or excessive use of force. Additionally, a federal officer cannot be tried under any state law in the U.S.
Therefore, under current circumstances, Gensler is not looking at jail time and the viral claims of him likely to be arrested are false.
Also Read: Who is Gary Gensler, the Most Hated Man on Planet Crypto?
