Gensler's Private Crypto Support Contrasts Public Stance

Former US Securities and Exchange Commission (SEC) Chair Gary Gensler may have held a more nuanced view of digital assets in private than his public stance suggested, according to US Representative Patrick McHenry. During a May 13 appearance on the Crypto in America podcast, McHenry revealed that Gensler acknowledged the value of digital assets and the potential of blockchain technology during private meetings. McHenry noted that Gensler's academic work at the Massachusetts Institute of Technology (MIT) included developing the concept of the airdrop, a largely forgotten chapter in his background.

However, once Gensler became SEC chair, his stance on crypto shifted dramatically. McHenry admitted to having a mistaken belief that Gensler would not be overly hostile to the crypto industry as SEC chair, expressing dismay at the regulatory actions taken under Gensler's leadership. Under Gensler's tenure, which started in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against industry companies. This regulatory hostility has caused Gensler and his team much scrutiny and backlash from industry leaders.

McHenry described discussions with Gensler on crypto regulation as often confusing. He explained that conversations about legal frameworks and content structures would start off reasonably but quickly become contradictory. Gensler would initially agree with certain points, only to later reject the same facts he had acknowledged moments earlier. McHenry suggested that Gensler's public opposition to crypto may have been shaped more by Senate politics and confirmation politics than by genuine concerns about the industry.

After departing the SEC on Jan. 20, Gensler returned to MIT to teach fintech and AI. Despite his return to academia, the regulatory actions taken under his leadership continue to impact the crypto industry. In December 2024, Coinbase CEO Brian Armstrong announced that the crypto exchange would sever ties with law firms employing former SEC officials involved in what he said was an effort to "unlawfully kill" the crypto industry. In January 2025, Gemini also said it won’t be hiring any graduates from MIT unless the university drops former Gensler from his teaching role.

Gensler's private support for crypto, as revealed by McHenry, adds a layer of complexity to his public image as a staunch regulator of the industry. While his tenure at the SEC was marked by aggressive regulatory actions, his acknowledgment of the value of digital assets and blockchain technology suggests a more nuanced view of the industry. This revelation may influence the ongoing debate about the appropriate regulatory framework for crypto, as industry leaders and policymakers continue to grapple with the challenges and opportunities presented by digital assets.