A free-market consumer advocacy group has launched a campaign urging Gary Gensler to step down as Securities and Exchange Commission (SEC) chair, and it’s having fun doing it.
Consumer Action for a Strong Economy (CASE) has released two “Goodbye Gary” videos targeting Gensler’s record as America’s top securities cop, arguing he undermined the SEC’s reputation and effectiveness. One video is a comic “Gary’s Gotta Go” sing-along that echoes the “Scotty Doesn’t Know” song from the bawdy 2004 teen comedy “Eurotrip.”
And while the ads are designed to be humorous, what’s at risk to the American economy is very serious, says CASE president Matthew Kancrach.
“Under Chairman Gensler, the SEC has become weaker, less effective, and less trusted by the American people,” Kandrach said.
The campaign highlights what critics say is Gensler’s waste of taxpayer dollars on unsuccessful lawsuits against crypto companies. That includes his failed attempt to classify Ripple’s XRP token as a security—a case dismissed by a federal judge last summer.
In another case, this one targeting a firm called Digital Licensing Inc., or DEBT Box, a federal judge threatened to sanction SEC attorneys for “materially false and misleading representations.” Gensler’s agency later dropped its lawsuit.
Gensler’s handling of the growing crypto sector has inspired anger from many supporters of the new financial asset, including incoming President Donald Trump, who announced plans to fire him “on day one.”
That’s extremely unlikely: Gensler’s term doesn’t end until 2026, and the president can’t fire an SEC chief without cause.
And while Gensler often demonized the crypto sector, he had a cozy relationship with the sector’s one-time poster boy, Sam Bankman-Fried. Gensler had a private meeting with the billionaire founder of FTX in 2022 just months before Bankman-Fried was arrested on fraud charges. Bankruptcy documents later showed FTX’s general counsel bragged about special access to “Gary.”
(SBF is currently serving a 25-year prison sentence for fraud and conspiracy related to his cryptocurrency exchange.)
Gensler’s management style rankled many in his own agency.
SEC Commissioners Mark Uyeda and Hester Peirce publicly criticized Gensler’s focus on crypto policies this fall. The pair called him “crypto-obsessed” after the SEC investigated a dining club’s non-fungible tokens. This despite the fact that no wrongdoing was ever alleged or found. “Creative people should be able to experiment with NFTs without having to consult a high-priced tea-leaf reader—ahem, lawyer,” they wrote.
Uyeda and Peirce, both Republicans, are rumored to be in the running to replace Gensler should he resign.
Another possible replacement is former SEC commissioner Dan Gallagher, currently with Robinhood Markets. During a congressional hearing on SEC regulatory policy, he said the agency fostered “innovation-killing federal regulatory uncertainty.”
Gensler, for his part, appears ready to leave.
During an address in New York on Nov. 14, he thanked SEC employees for their work in protecting investors and maintaining efficient markets.
“It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world,” said Gensler.
Kandrach expressed hope that Gensler’s departure will indeed occur, asserting his replacement is critical to restoring consumer protection and public trust in the SEC.
Paul Grewal, the chief legal officer for Coinbase and an outspoken Gensler critic, is hopeful that change can come sooner than some think.
“I do think that it would be foolish to expect any significant change on the very first day,” he told the crypto news site CoinDesk. But, he added, “I will gently disagree with those who suggest that this will take forever.”
