SEC Chair Gary Gensler's strict regulatory approach has drawn widespread criticism from the crypto sector, being characterized by numerous lawsuits against digital asset firms with little guidance provided. Experts like Tyler Winklevoss have asserted that his methods have caused significant harm to the industry. A legal analysis indicates that Gensler's claim that all tokens are securities without proper guidance has left the US market nearly untenable for blockchain companies. Some argue that while regulation by enforcement (RBE) has historically existed, Gensler's applications have been excessive, lacking a tailored regulatory framework. Attorneys advocate for detailed rules and more proactive regulatory guidance, akin to Europe's MiCA, which emphasizes preemptive regulations over enforcement-based compliance. Despite Gensler's departure approaching, concerns remain about ongoing legal actions, including those from private parties alleging securities violations. Calls for Congress to define the regulatory landscape for crypto assets are becoming urgent to avoid judicial overreach and to restore confidence in the market.

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