U.S. Representative Patrick McHenry says the then SEC chair, Gary Gensler, actually supported cryptocurrency behind closed doors.
McHenry said during a recent podcast that Gensler’s true views were formed by political rather than personal reasoning regarding the industry. McHenry, who previously led the House Financial Services Committee, said Gensler understood the potential of digital assets but chose to act against them. He suggested that Senate politics and the need for confirmation support influenced Gensler’s public stance.
SCOOP: @PatrickMcHenry reveals that former SEC chief Gary Gensler was not as anti-crypto in private as he was in public. “I think it had more to do with Senate politics, and confirmation politics.”Full episode with the former Chair of @FinancialCmte out tomorrow AM! pic.twitter.com/tj950SV0Kv
— Eleanor Terrett (@EleanorTerrett) May 14, 2025
McHenry highlights Gensler’s crypto knowledge
Speaking on the Crypto of America podcast, McHenry shared that Gensler was once optimistic about crypto’s future. He credited Gensler for advancing the concept of airdrops, which helped crypto projects boost liquidity. Despite these contributions, McHenry expressed disappointment in the SEC’s aggressive enforcement actions under Gensler’s leadership.
The former lawmaker said he had detailed conversations with Gensler about blockchain technology. However, he claimed Gensler later rejected those same points when speaking in public. McHenry attributed this shift to political pressure and described Gensler’s change in position as influenced by progressive ideology.
He also criticized Senator Elizabeth Warren, stating that she had taken a strong anti-crypto position without understanding the underlying technology. McHenry argued that while Gensler did understand crypto, he still aligned with the same restrictive views.
Criticism of SEC leadership and policy direction
McHenry said that under Gensler, the SEC became a rogue agency that often enforced rules without proper economic analysis or public input. He warned that political motivations could shape future regulations in ways that harm the digital asset industry and hinder innovation.
In May 2024, McHenry accused Gensler of misleading Congress. He claimed that the SEC had internally classified Ethereum’s ether as a security before a hearing, during which Gensler declined to confirm that position. McHenry argued that the SEC’s actions lacked transparency and accountability.
Gensler defends regulatory approach despite pushback
When Gensler was about to leave office in January 2025, he kept on defending the SEC’s position regarding crypto. Many digital assets, he said, do not adhere to already existing securities regulations, and he louded doubts over the value of some tokens. He called for caution among the investors because the market was speculative. While criticizing, Gensler signed spot Bitcoin ETFs in early 2024, including the ones from BlackRock and other asset managers. His successor, Paul Atkins, is likely to adopt a regulatory stance that favours clarity and innovation.
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