Crypto stakeholders have criticized the outgoing Securities and Exchange Commission (SEC) Chair Gary Gensler for his continued hostility toward the crypto industry.
In a recent Bloomberg interview, Gensler reiterated his concerns about the emerging industry, claiming that it was “rife” with bad actors.
Gensler defends SEC legacy
According to him, the financial regulatory agency made significant strides in policing the sector under his leadership.
He noted that the SEC’s regulatory efforts under his leadership resulted in nearly 100 enforcement actions initiated during his tenure. He emphasized that these efforts were built upon the 80 actions taken by his predecessor, Jay Clayton.
The outgoing SEC Chair also pointed to high-profile enforcement cases, including actions against figures like Sam Bankman-Fried, as evidence of the agency’s commitment to protecting investors.
Moreover, Gensler characterized the crypto industry as overly speculative, claiming it lacks the strong fundamentals in traditional financial sectors.
He compared most crypto projects—estimated at 10,000 to 15,000 outside Bitcoin—to high-risk venture capital endeavors with minimal investor returns. Gensler stated:
“I’ve been around finance for over four decades, and everything in the markets trade on a mixture of fundamentals and sentiment. At any given time, I’ve never seen a field that’s so much wrapped up in sentiment and not so much about fundamentals.”
Gensler will leave his role at the Commission on Jan. 20.
Industry backlash
Gensler’s remarks have ignited criticism from key figures in the crypto space.
Coinbase’s Chief Legal Officer Paul Grewal accused Gensler of alienating voters, suggesting that his “arrogance” contributed to the political shift in swing states during the recent elections.
Grewal said:
“In swing state after swing state, his arrogance mobilized thousands and thousands of the very people he purports to protect to reject this Administration. And still, zero reflection, zero introspection.”
Pro-crypto attorney Bill Morgan went further, arguing that the SEC itself is “rife with bad actors.”
These comments underline the long-standing tension between the crypto industry and the Gensler-led SEC.
Under Gensler’s leadership, the agency targeted major crypto companies like Binance and Coinbase. The Blockchain Association reports that these actions cost the industry more than $400 million in legal defense fees.
