Ex-SEC Chair Gary Gensler privately supported crypto — McHenry

Gary Gensler’s approach to crypto regulation, while publicly aggressive, may have been significantly different behind closed doors, according to former US Representative Patrick McHenry. McHenry, speaking on the “Crypto in America” podcast, revealed that in private meetings, Gensler expressed a more nuanced understanding of digital assets and their potential, even acknowledging the value of blockchain technology and his own past involvement in developing the concept of airdrops during his time at MIT.

However, McHenry noted a stark contrast between Gensler’s private views and his public actions as SEC Chair. He described conversations with Gensler as confusing, with the former chair often agreeing to points only to later contradict himself. McHenry suggests that Gensler’s public stance may have been influenced more by political considerations—Senate and confirmation politics—than by a consistent regulatory philosophy.

Gensler’s tenure at the SEC (2021-2025) was marked by an aggressive regulatory approach towards the crypto industry, resulting in over 100 regulatory actions against various companies. This hostility sparked considerable backlash from industry leaders, exemplified by Coinbase CEO Brian Armstrong’s decision to sever ties with law firms employing former SEC officials involved in what he termed an attempt to “unlawfully kill” the crypto industry. Further illustrating the industry’s discontent, Gemini announced in January 2025 that it would not hire MIT graduates unless the university removed Gensler from his teaching position.

This discrepancy between Gensler’s private opinions and public actions raises questions about the motivations behind the SEC’s regulatory strategy under his leadership. The industry’s strong reaction underscores the significant impact of his policies and the lingering uncertainty surrounding the future of crypto regulation in the United States. Gensler’s return to MIT to teach fintech and AI after leaving the SEC adds another layer of complexity to his legacy in the crypto space. The contrast between his past involvement in the development of crypto concepts and his later regulatory actions highlights a significant shift in his stance, leaving the industry to grapple with the implications of his tenure.