Gensler’s Parting Remarks on Crypto
In a final interview before stepping down, outgoing SEC Chair Gary Gensler took a harsh stance on the crypto industry, labeling it “rife with bad actors.” His remarks on Wednesday echoed his longstanding skepticism toward blockchain technology. Gensler, who steps down on January 20, leaves behind a legacy of aggressive regulation and enforcement in the crypto space.
When asked about the high-profile cases against Sam Bankman-Fried (FTX), Changpeng Zhao (Binance), and Do Kwon (Terra), Gensler implied that blockchain technology itself fosters noncompliance. “It’s a field that was built up around noncompliance,” he said with a smile during a televised Bloomberg interview.
Criticism of Crypto’s Fundamentals
Gensler highlighted what he perceives as a unique flaw in crypto assets compared to traditional financial products.
“I’ve never seen a field so much wrapped up in sentiment, and not so much about fundamentals,” he remarked, contrasting digital assets with financial markets he’s worked with throughout his career.
During his tenure, Gensler’s SEC brought roughly 100 enforcement actions against crypto-related firms, a figure he defended by comparing it to the 80 enforcement actions initiated by his predecessor, Jay Clayton. Gensler described these efforts as consistent and nonpartisan, noting that skepticism about crypto spanned political lines.
Trump’s Incoming SEC Pick Likely to Reverse Course
With Gensler’s exit aligning with Donald Trump’s second term, the crypto industry is anticipating a potential regulatory pivot. Trump’s nominee for SEC Chair, former commissioner Paul Atkins, is expected to adopt a more favorable stance toward digital assets.
Unmoved by Crypto Community Backlash
Despite enduring heavy criticism from the crypto community during his four-year term, Gensler remained unfazed.
“If you’re not willing to be attacked, you can’t go into the public square and debate policy,” he said, quoting former Secretary of State Hillary Clinton.
Gensler concluded by downplaying the crypto sector’s overall significance. “Less than 10% of the public invests in this field,” he stated, expressing confidence that the general public is aware of the risks associated with crypto.
