Crypto stakeholders have criticized outgoing Securities and Exchange Commission (SEC) Chairman Gary Gensler for his continued hostility toward the crypto industry.
In a recent Bloomberg interview, Gensler reiterated his concerns about the emerging industry, claiming it was “full” of bad actors.
Gensler defends SEC legacy
According to him, under his leadership, the financial regulator has made significant progress in overseeing the sector.
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 built on the 80 actions taken by his predecessor, Jay Clayton.
The outgoing SEC chairman 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.
Furthermore, Gensler characterized the crypto industry as overly speculative, claiming that it lacks the strong foundations in traditional financial sectors.
He compared most crypto projects – estimated at 10,000 to 15,000 outside Bitcoin – to high-risk venture capital projects with minimal returns for investors. Gensler stated:
“I have been in the financial industry for over four decades, and everything in the markets is traded based on a combination of fundamentals and sentiment. I have never seen a field that is so wrapped up in sentiment and not so much about fundamental issues.”
Gensler will resign from his position at the Commission on January 20.
Industry response
Gensler’s comments have drawn criticism from key figures in the crypto space.
Coinbase’s Chief Legal Officer, Paul Grewal, accused Gensler of alienating voters, suggesting 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 people he claims to protect to reject this administration. And yet: zero reflection, zero introspection.”
Pro-crypto attorney Bill Morgan went further, arguing that the SEC itself is “full of bad actors.”
These comments underscore the long-standing tension between the crypto industry and the Gensler-led SEC.
Under Gensler’s leadership, the agency focused on major crypto companies such as Binance and Coinbase. The Blockchain Association reports that these actions have cost the industry more than $400 million in legal defense costs.