ARK Invest CEO Cathie Wood slams SEC as ‘menace’ to crypto, backs leadership change

The United States Securities and Exchange Commission was a “menace” for the crypto sector, according to ARK Invest founder and CEO Cathie Wood, who believes a shift in leadership at the agency could unleash innovation and investment for the sector.

In a November 11 video shared by the investment firm, the SEC’s approach was criticized for driving talent abroad, with Wood suggesting that new leadership could transform the regulatory landscape to support growth in crypto, DeFi, and other technologies.

Wood remarked that the crypto industry has “more clarity now in terms of the investment landscape after the election,” and a “changing of the guard” within agencies like the SEC and the FTC could be the “most profound” change for the sector in the near term.

SEC criticised

Under Chairman Gary Gensler, the SEC reportedly initiated 46 crypto-related enforcement cases in 2023, with penalties against crypto firms and executives totalling $4.7 billion in 2024—an increase of over 3,000% from the previous year.

Gensler’s tough stance on digital assets has come under fire as crypto adoption surges across the US, now sitting in fourth place on the Global Crypto Adoption Index, according to Chainalysis.

Critics argue that his approach has stifled innovation in the sector.

Since Gensler took the helm at the SEC, the crypto industry has felt mounting pressure from regulatory actions, many of which critics argue lack solid justification. 

Gensler claims all cryptocurrencies except Bitcoin can be considered illegally issued securities.

This regulation-by-enforcement approach has faced criticism from both US lawmakers and within the SEC itself, including dissent from commissioners Hester Peirce and Mark Uyeda.

During a September congressional hearing, Lawmakers criticised SEC Chair Gary Gensler and the watchdog over its aggressive enforcement action strategy toward digital assets, and fabricating terms like “crypto asset security.”

At the time, commissioner Peirce, known for backing the digital currency sector, pointed out that the SEC has intentionally avoided offering clear rules for crypto, even though it has the tools to do so. 

She added that using vague language—like suggesting all crypto tokens are automatically securities—has only made it harder for the agency to effectively oversee the markets.

Meanwhile, commissioner Mark Uyeda has also called the agency’s approach “a disaster for the whole industry,” right after crypto exchange Crypto.com initiated a lawsuit against the regulator alleging it overstepped its jurisdiction by enforcing regulations on the cryptocurrency market without issuing clear regulatory guidance.

New administration to turbocharge the US economy

Gensler’s future at the securities watchdog remains uncertain as the 47th US President Donald Trump has vowed to fire the SEC chief as soon as he comes into power. 

According to Wood, Trump is “very positively predisposed” to crypto, DeFi, and digital innovation, and she is confident that new SEC leadership will come under his administration.

She believes this change could “turbocharge the US economy” and fuel growth in sectors like blockchain, AI, robotics, and energy.

As previously reported by Invezz, Robinhood’s chief legal and compliance officer and former SEC commissioner Dan Gallagher is rumoured to be a leading contender for SEC chair.

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