Former SEC Chair Gensler Defends Crypto Enforcement Record Amid Regulatory Reversal

Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler defended his aggressive crypto enforcement approach in a CNBC "Squawk Box" interview this week, stating he was "proud" of actions taken during his four-year tenure. Gensler reiterated his long-standing position that aside from Bitcoin, most of the "5 or 10 thousand" crypto tokens lack clear fundamentals and trade primarily on hype rather than underlying business metrics.

Gensler pushed back against critics who argued his regulation-by-enforcement approach stifled innovation, framing his actions as necessary for protecting everyday investors in an industry plagued by fraudsters like Sam Bankman-Fried. He maintained that a large share of crypto tokens should be treated under securities laws, echoing positions he held throughout his chairmanship from 2021-2025.

The interview highlighted the dramatic regulatory shift since Gensler's departure on January 20, 2025, when President Donald Trump took office. Under new leadership first with acting Chair Mark Uyeda and now confirmed Chair Paul Atkins, the SEC has dropped multiple high-profile cases against crypto companies including Binance, Coinbase, and Kraken, and settled the long-running Ripple dispute. The agency has also stated that "very few tokens are securities" and introduced streamlined ETF listing standards.

Gensler's comments sparked immediate criticism from crypto industry figures who called his stance unacceptable, while exchange leaders emphasized the need for clear rules rather than personal attacks. The former chair also weighed in on Trump's proposal to shift from quarterly to biannual reporting, warning that reduced transparency could increase market volatility.