Former US Securities and Exchange Commission (SEC) Chair Gary Gensler might not have been as antagonistic toward crypto in private discussions as he seemed in public, as per former US Representative Patrick McHenry.
During a May 13 guest spot on the Crypto in America podcast, McHenry disclosed that in private encounters, Gensler articulated a far more intricate perspective on digital assets.
“Did he present himself, or was he as anti-crypto in private as he did publicly?” McHenry was queried. His reply: “No… Nope.”
McHenry mentioned that Gensler “recognized the significance of digital assets” and acknowledged blockchain technology’s potential during his tenure at the Massachusetts Institute of Technology.
Gerald Gallagher, general counsel at Sei Labs, also highlighted that Gensler contributed to the formation of the airdrop concept during his academic career, referring to it as a largely overlooked segment of his background.
Nonetheless, once Gensler assumed the role of SEC chair, McHenry stated his position changed drastically. “I held this odd, misguided, foolish belief that he wouldn’t be that harmful as SEC chair,” McHenry confessed. “And I mean, just the extent of disappointment.”
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Gensler’s crypto position was “ambiguous”
McHenry remarked that dialogues with Gensler regarding cryptocurrency regulation were frequently perplexing.
He noted that discussions about legal frameworks and structures often began reasonably, but swiftly turned contradictory. He illustrated how Gensler would initially concur with specific points, only to later dismiss the very facts he had acknowledged just moments prior.
According to McHenry, Gensler’s public dissent may have been influenced more by “Senate politics and confirmation politics than anything else.”
After leaving the SEC on January 20, Gensler returned to the Massachusetts Institute of Technology to instruct on fintech and AI.
Under Gensler’s leadership, which commenced in 2021, the SEC adopted an assertive regulatory approach toward cryptocurrency, instigating over 100 regulatory actions against firms in the industry.
This regulatory antagonism drew substantial scrutiny and backlash from industry executives.
In December 2024, Coinbase CEO Brian Armstrong declared that the crypto exchange would cut ties with law firms employing former SEC officials involved in what he described as an endeavor to “illegally decimate” the crypto sector.
In January 2025, Gemini stated it wouldn’t employ any MIT graduates unless the institution removed Gensler from his instructional position.
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