U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has appeared to double down on the agency’s hardline stance on cryptocurrency regulation.

In a recent Bloomberg interview, he reaffirmed that the SEC will continue its much-maligned enforcement-led approach rooted in existing securities laws despite mounting backlash from the crypto industry and lawmakers.

Commission Holds Firm on Crypto Regulation

Speaking with Ed Ludlow and Caroline Hyde on October 22, Gensler reiterated that the commission’s main priority remains investor protection. He cited several cases where people lost money in the crypto market due to poor disclosure practices while stating that decentralized technologies are not incompatible with established securities regulations.

The SEC’s approach has caused controversy, with many criticizing the regulator for stifling innovation by relying on outdated rules, notably the Howey Test, which first came into use in 1946. The authority regularly applies the test to determine whether a cryptocurrency transaction qualifies as an investment contract, which would make it subject to U.S. securities laws.

Despite the condemnation, Gensler has stood firm, emphasizing that regulations grounded in historical precedent offer the best path forward for protecting crypto investors while promoting the sector’s integrity.

Additionally, the agency has signaled its intention to continue keeping a close watch on crypto. Its Division of Examination recently released its 2025 priorities, highlighting spot Bitcoin and Ethereum exchange-traded products (ETPs) as key areas of interest.

This specificity is a marked departure from previous years when the regulator only broadly referenced crypto without singling out individual products.

Questions on Gensler’s Future<