Blockchain Association says legally, Gensler has to step back

Gensler has displayed clear bias against the crypto space, plus his agency has failed to do its job, crypto advocacy group says

article-image

Artwork by Axel Rangel

share

The Blockchain Association says that according to federal law, SEC Chair Gary Gensler has to step back from digital assets. 

In an open letter published Thursday, the crypto advocacy firm claims that Gensler is stepping outside his congressionally-granted bounds. 

The SEC has failed under Gensler’s leadership, the Blockchain Association says, by refusing to create rules and guidance that “allow investors, entrepreneurs, and the public to know whether the securities laws apply to their products or services.” 

Gensler has displayed clear bias against the crypto space, the letter added, and he therefore should not be allowed to be involved in enforcement actions against the space. 

“During his tenure at the SEC, Chair Gensler has repeatedly and forcefully communicated that he has already prejudged each and every case that may come before him, asserting that all digital assets except for bitcoin are securities,” the letter reads. “Chair Gensler’s vote is tainted: his refusal to engage with the facts and circumstances of each case undermines the Wells process and deprives enforcement targets of the due process rights to which they are entitled.” 

It’s not the first time a crypto industry player has requested Gensler take a step back. In March, Ripple and LBRY, two token issuers who have gone head-to-head with the SEC over crypto’s classification, said Gensler’s public comments should disqualify him from participating in future legal proceedings.

LBRY and Ripple were specifically referring to a New York Magazine interview that landed the SEC head in hot water earlier this year. In his comments, Gensler said that “everything other than bitcoin” is a security. 

It appears that Gensler’s mind is already made up on the status of crypto, Ripple Chief Legal Officer Stuart Alderoty said, meaning the SEC chair’s personal opinions could “impermissibly taint” future legal proceedings. 

“It’s clear that the digital assets industry cannot expect a fair assessment from Chair Gensler,” Jake Chervinsky, Blockchain Association chief policy officer, said in a statement Thursday.

“The time has come for Chair Gensler to recuse himself from all decisions related to digital asset-related enforcement matters. If he refuses, then I expect enforcement targets will begin raising the matter of his recusal in SEC proceedings and in federal district courts.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

morpho 2 graphic.png

Research

Utilizing a ‘DeFi Mullet’ approach, Coinbase’s Bitcoin-backed loans integration with Morpho demonstrates a powerful blueprint for CEXs to monetize dormant assets by expanding adoption of wrapped products (cbBTC, USDC) while also supporting native and/or preferred DeFi ecosystems (Base) which can further lead to downstream growth in onchain liquidity and increased utilization of the related assets.

article-image

It’s been seven years since a Bank of America economist called bitcoin the “biggest bubble in history”

article-image

There are signs of cautious optimism in the crypto markets for now

article-image

Bitcoin’s managing to hold up, but a selloff could pave the way for an even more aggressive altcoin reaction

article-image

M^0’s first Solana user will be a platform offering banking-like services with stablecoins

article-image

The agency has “declared effective” Galaxy’s registration statement to list on the Nasdaq

article-image

Latest rise for Treasurys may signal that investors could be pulling out of bonds