Gensler's Private Crypto Views Contrasted With Public Stance, Industry Reacts

Gary Gensler, the former chair of the U.S. Securities and Exchange Commission (SEC), has been revealed to have held a more favorable view of cryptocurrencies in private than his public stance suggested. This revelation came from former House Financial Services Committee Chair Patrick McHenry, who disclosed that Gensler privately acknowledged the value of crypto assets while publicly advocating for stringent regulations and enforcement actions.

McHenry's comments, made during an interview on the Crypto in America podcast, highlighted the disconnect between Gensler's private views and his public actions. According to McHenry, Gensler's hardline public narrative was influenced by political pressures, particularly the need to secure Senate confirmation and navigate Washington politics. This political reality shaped Gensler's approach, leading to a regulatory environment that was often seen as contradictory and confusing for industry participants.

Gensler's tenure at the SEC was marked by over 100 enforcement actions against crypto industry players, which created a climate of uncertainty and stifled innovation. Developers and institutions found it challenging to navigate the regulatory landscape, and analysts noted that the gap between Gensler's words and actions contributed to damaging uncertainty. This regulatory whiplash has had lasting effects, with industry leaders like Coinbase CEO Brian Armstrong and Gemini taking public stances against the SEC's actions.

Despite the regulatory challenges, Gensler's SEC did approve spot Bitcoin and Ether ETFs in 2024, marking a significant regulatory win for the crypto industry. The approvals came after the SEC confirmed that both Bitcoin and Ether traded on deep, surveillance-shared markets, providing a workable model for auditors and custodians. However, the SEC continued to reject ETFs tied to thinly traded tokens and uncovered various schemes that could harm investors, further complicating the regulatory environment.

In response to the backlash and regulatory uncertainty, the SEC under Acting Chairman Mark T. Uyeda launched a crypto task force in April 2025. This task force aims to establish clear, comprehensive regulations for digital assets by leveraging agency expertise and public feedback. The task force's goals include creating clear registration pathways, disclosure standards, and targeted enforcement, as well as fostering roundtable discussions with industry leaders.

SEC Chair Paul Atkins reiterated the agency's commitment to clear crypto regulation during a roundtable session on tokenization. Atkins emphasized the need for "clear rules of the road for issuance, custody, and trading" of digital assets and vowed to discourage bad actors through defined regulations rather than ad hoc enforcement. This shift in approach is seen as a step towards ending the regulatory whiplash that has plagued the industry under Gensler's leadership.

Market participants now anticipate that Congress will push for clearer statutory guidance that aligns technocratic understanding with public messaging. This move is hoped to end the regulatory uncertainty and political theatre that have characterized the crypto industry's relationship with the SEC under Gensler. The new approach aims to provide a more stable and predictable regulatory environment, fostering innovation and growth in the digital asset space.