The numbers tell a grim story. Under the leadership of Chairman Gary Gensler, the SEC has spent an inordinate amount of its time and resources attacking cryptocurrencies – a sector that, by the Commission’s own estimate, represents just 0.25% of global markets. This disproportionate attention has produced little other than costly courtroom defeats and damaged institutional credibility. The Commission’s setback in the Ripple case and other major reversals demonstrate the flaws in its regulation-by-enforcement strategy.

Recent polls from the Blockchain Association and HarrisX show that two-thirds of voters want Congress, not unelected regulators, to set clear rules for crypto markets. This shouldn’t surprise anyone. Americans understand that innovation requires regulatory clarity, not arbitrary enforcement actions. They have seen how the SEC’s approach has stimulated innovation, jobs and economic opportunity abroad, while leaving American consumers with fewer protections than a well-regulated market would otherwise provide.

This context makes any additional enforcement actions during Chairman Gensler’s remaining term particularly problematic. Blockchain Association has consistently opposed last-minute regulatory moves by outgoing governments, regardless of party. In December 2020, we strongly criticized the Treasury Department’s hasty “midnight regulations” on digital asset wallets. Today the same principles apply: major regulatory decisions should not be taken during transition periods when they have no democratic legitimacy and especially not when they can be quickly reversed by the next Commissioner.

The costs of ignoring this principle extend beyond immediate market disruption. Any enforcement action taken in these final months would further erode the SEC’s institutional credibility and waste taxpayer resources on cases that are likely to be abandoned or reversed. More importantly, it would be a form of regulatory backlash against voters’ clear preference for a different approach.

The path forward is clear. Chairman Gensler should immediately halt all planned enforcement actions against crypto companies and instead focus on an orderly transition. This would allow his successor to implement a regulatory framework aligned with both Congressional intentions and market realities. It would also help restore the Commission’s reputation for thoughtful, considered rulemaking rather than partisan activism.

The crypto industry stands ready to work with Congress on comprehensive legislation that protects consumers while promoting innovation. We have consistently called for appropriate regulation, but this must come through the right channels, with democratic accountability and a fair process. The era of regulation through enforcement has failed. It is time for the SEC to recognize this reality and move away from a strategy that has harmed American competitiveness while failing to achieve its stated objectives.

The stakes go beyond crypto. How the SEC conducts itself during this transition will set precedents for future administrative changes. By choosing restraint over activism, Chairman Gensler can help restore institutional norms that benefit all market participants, regardless of administration or party.

The message from voters and the markets is unequivocal: the SEC’s crypto enforcement campaign has been a costly mistake. If we continue this now, despite clear public rejection, the damage would only increase. President Gensler must do what is right for the markets, the Commission’s reputation, and American innovation. It’s time to resign.