Former SEC Chair Gensler Was Less Anti-Crypto in Private, Says Ex-Congressman

Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler struck a far more moderate tone on digital assets behind closed doors than he did in public, according to former House Financial Services Committee Chair Patrick McHenry. Speaking on the Crypto in America podcast, McHenry said that during private discussions, Gensler showed an appreciation for the potential of blockchain and digital assets — a stark contrast to his aggressive regulatory posture while leading the SEC. Asked whether Gensler was as hostile to crypto in private as he was in public, McHenry replied: “No... Nope.” McHenry recalled that Gensler often referenced his time at the Massachusetts Institute of Technology, where he taught courses on blockchain and digital currencies. “He saw the value of digital assets,” McHenry said. “He understood the technology.” Others who worked with Gensler during his academic years confirmed the sentiment. Gerald Gallagher, general counsel at Sei Labs, noted that Gensler contributed to the early conceptualization of token airdrops — a detail rarely mentioned in his public biography. But according to McHenry, that academic curiosity didn’t carry over to his role at the SEC. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry said. “And I mean, just the level of dismay.” Gensler took over the agency in 2021 and quickly moved to tighten scrutiny on the crypto industry. Under his leadership, the SEC launched over 100 enforcement actions against crypto firms. His approach drew sharp criticism from companies and lawmakers alike, many of whom accused him of overreach. McHenry described conversations with Gensler as often “confusing,” saying that Gensler would sometimes agree with legal points during meetings, only to contradict himself moments later. He suggested that Gensler’s public posture may have been shaped more by political pressure than personal belief. “I think it had more to do with Senate politics and confirmation politics than anything else,” McHenry said. Gensler stepped down from the SEC in January 2025 and returned to MIT, where he now teaches courses on fintech and artificial intelligence. Crypto executives remain critical of Gensler’s impact. In December 2024, Coinbase CEO Brian Armstrong said the company would cut ties with law firms employing former SEC officials tied to what he described as an effort to “unlawfully kill” the crypto industry. A month later, Gemini announced it would stop hiring MIT graduates unless the university removed Gensler from his teaching post.