Winklevoss Warns Gensler’s Crypto Crackdown Threatens U.S. Innovation Lead

Tyler Winklevoss, co-founder of Gemini, has escalated his public critique of former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, accusing him of stifling innovation and causing irreversible harm to the cryptocurrency sector. During a CNBC interview on September 18, Gensler defended his tenure, emphasizing investor protection and dismissing most crypto trading as driven by hype rather than fundamentals. He highlighted regulatory reforms, such as shortening stock settlement cycles, but refrained from endorsing broader crypto innovation, a stance Winklevoss has labeled as “a disgrace to our country.”Tyler Winklevoss Has a Curt Response to Gary Gensler^[1]

Gensler’s tenure at the SEC, from 2021 until his resignation in 2025, was marked by aggressive enforcement actions against major crypto firms, including Binance, Coinbase, and Ripple. Winklevoss argued that this approach created unnecessary friction, driving companies overseas and inhibiting U.S. leadership in the space. “His behavior cannot be excused as ‘good faith mistakes,’” Winklevoss stated in a November 15 X post, adding that Gensler’s actions were “entirely thought out, intentional, and purposeful to fulfill his personal, political agenda at any cost.”No Apology Can ‘Undo the Damage’ Gary Gensler Has…^[4]

The criticism extends beyond Gensler to include recent disputes with Brian Quintenz, Trump’s nominee for Commodity Futures Trading Commission (CFTC) chair. Quintenz publicly released private messages with Winklevoss, suggesting the Gemini co-founder sought assurances about the CFTC’s enforcement actions. Winklevoss accused Quintenz of being unfit to lead, citing his past regulatory stances and ties to prediction market firm Kalshi. Quintenz, in turn, claimed he was misled by the Winklevosses and that their lobbying efforts contributed to delays in his Senate confirmation.Prospective CFTC Chair Releases Private Texts With Winklevoss…^[6]

Winklevoss has also been vocal about broader regulatory challenges. In a separate interview, he predicted Bitcoin could reach $1 million if it displaces gold as a store of value, though he acknowledged mainstream adoption remains in early stages. His comments underscore the divide between pro-crypto advocates and regulators, with critics arguing Gensler’s policies prioritized enforcement over fostering innovation. “The harm inflicted by Gensler is irreparable,” Winklevoss asserted, adding that “nearly 23 million dollars in pro-crypto donations” reflect his commitment to counter regulatory overreach. Tyler Winklevoss Criticized Gensler on Crypto Rules, Innovation^[2]

The tensions have spilled into legal arenas. In September, the SEC reached a settlement with the Winklevoss twins’ Gemini Trust over a crypto asset lending program, resolving a lawsuit without admitting fault. SEC, Billionaire Winklevoss Twins Resolve Lawsuit Over Gemini Earn^[3] Meanwhile, 18 U.S. states filed a lawsuit against the SEC in November, accusing it of overreach in its treatment of the crypto industry. The case highlights growing bipartisan frustration with federal oversight, particularly as the Trump administration signals a pro-crypto agenda.

Analysts suggest the regulatory landscape could shift significantly if Gensler’s successor adopts a more collaborative approach. Current SEC Chair Paul Atkins has already initiated a “Project Crypto” to streamline digital asset regulations, while the CFTC’s acting chair, Caroline Pham, has pursued similar reforms. However, Winklevoss’s ongoing clashes with regulators—including a $5 million settlement with the CFTC in 2025—illustrate the sector’s precarious position.