Gary Gensler announced he would step down as chairman of the U.S. Securities and Exchange Commission (SEC) in January, a move many expected after Donald Trump’s victory in the 2024 election.
During his tenure, Gensler became known for his tough stance on crypto, pursuing a series of high-profile enforcement actions that left a lasting impact on the industry.
As he prepares to exit, here are the top five crackdowns that defined his time at the SEC.
Ripple vs. SEC is one of the most significant cases in crypto history, raising key questions about how digital assets should be regulated under U.S. securities laws.
The conflict began in December 2020 when the SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen.
The SEC accused Ripple of conducting an unregistered securities offering through the sale of XRP, claiming the company raised $1.3 billion unlawfully.
Ripple contested these allegations, arguing that XRP functions as a decentralized currency, similar to Bitcoin (BTC) and Ethereum (ETH), which are not classified as securities by the SEC.
In 2023, Judge Analisa Torres ruled in Ripple’s favor on the issue of public sales, stating that they did not violate securities laws.
However, the court determined that Ripple’s institutional sales did violate securities regulations, marking a legal win for the SEC.
Ripple was ordered to pay a $125 million fine in August 2024.
Both sides filed appeals in October. The SEC challenged parts of the ruling, while Ripple filed a cross-appeal.
The case continues, with the U.S. Court of Appeals instructing the SEC to finalize its briefs by Jan. 15, 2025.
In June 2023, the SEC, under Gensler, sued Coinbase, accusing the exchange of offering unregistered securities to U.S. investors through its platform, wallet services, and staking programs.
The SEC argued that several tokens listed on Coinbase met the securities criteria under U.S. law and required proper registration.
Coinbase, however, claims it had sought regulatory clarity from the SEC for months, but the agency failed to provide actionable feedback. The company maintains that its activities are lawful and adhere to existing regulations.
Coinbase CEO Brian Armstrong has criticized the SEC’s approach, calling it “regulation by enforcement,” and has defended the company’s staking services as distinct from other crypto offerings targeted by the SEC.
As of late 2024, the case remains in litigation, with Coinbase pushing to dismiss some charges and challenge the SEC’s authority.
In June 2023, the SEC filed a lawsuit against Binance , alleging violations of U.S. securities laws.
The charges center around Binance’s facilitation of trading digital assets like BNB and BUSD, which the SEC deems unregistered securities.
Additionally, the SEC accused Binance of misleading investors about the independence of its U.S. operations and mismanaging customer funds.
Binance denied the allegations, arguing that it has complied with regulations, particularly for activities conducted outside the U.S.
The company asserted that Binance.US operates independently from the global exchange, contrary to the SEC’s claims.
The case is ongoing, with Binance challenging the SEC’s overreach and demanding clarification of existing regulations.
The SEC’s case against FTX and founder Sam Bankman-Fried stands as one of the largest fraud cases in the history of financial regulation.
Bankman-Fried was accused of orchestrating a scheme to defraud investors by misusing customer funds from FTX and its affiliate Alameda Research.
The SEC alleged that FTX diverted funds to cover trading losses, finance personal expenses, and make political contributions.
FTX’s collapse in late 2022, triggered by a liquidity crisis and the fall of its token, FTT, led to bankruptcy and an $8 billion shortfall in customer funds.
The SEC, along with other agencies, charged Bankman-Fried with misleading investors and mismanaging assets.
In 2024, Bankman-Fried was sentenced to 25 years in prison. FTX is currently restructuring, with plans to distribute between $14.5 billion and $16.3 billion to creditors and customers.
In 2023, the SEC began scrutinizing crypto staking programs, which allow users to lock up their assets in exchange for rewards.
The SEC views these services as investment contracts subject to securities law.
One of the most notable cases involved Kraken, a U.S.-based crypto exchange, which was accused of offering unregistered staking services to U.S. customers. In response, Kraken paid a $30 million penalty and agreed to cease offering staking services to U.S. users.