Gensler’s Private Praise for Crypto Clashes with Public Enforcement Record
Former Securities and Exchange Commission (SEC) Chair Gary Gensler may have presented a much friendlier face to the crypto industry behind closed doors than he ever did publicly, according to former U.S. Representative Patrick McHenry. In a revealing interview aired May 13 on the Crypto in America podcast, McHenry said that Gensler’s personal views on blockchain and digital assets stood in stark contrast to the rigid regulatory line he enforced as SEC chief.
“Did he come across, or was he as anti-crypto in private as he did in public?” McHenry was asked during the interview. His answer was blunt: “No… Nope.”
Gensler, who left his post as SEC Chair on January 20, had long been viewed by the crypto community as an adversary, leading the agency’s aggressive enforcement campaign that resulted in more than 100 actions against companies in the sector. But according to McHenry, the man he met in private was far from the figure who became a symbol of Washington’s crackdown on crypto.
MIT Roots and a “Nuanced” View
McHenry said that in personal conversations, Gensler “saw the value of digital assets” and expressed interest in their potential. He referenced Gensler’s time as a professor at the Massachusetts Institute of Technology (MIT), where the former regulator taught courses on blockchain and digital currencies. There, Gensler even contributed to developing the concept of the airdrop, a mechanism now widely used in crypto for distributing tokens. Gerald Gallagher, general counsel at Sei Labs, highlighted Gensler’s involvement in that innovation, calling it “a largely forgotten chapter in his background.”
Yet, McHenry expressed regret over his initial optimism that Gensler would take a more balanced approach once appointed to lead the SEC. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry admitted. “And I mean, just the level of dismay.”
Confusing Conversations and Political Pressure
McHenry described Gensler’s stance on crypto regulation as inconsistent and, at times, bewildering. He recounted discussions where Gensler would begin by agreeing on key points about legal frameworks and industry structure, only to contradict himself moments later. These conversations, McHenry said, often lacked clarity and left him questioning whether the former SEC chair’s public posture was shaped more by political motivations than by principle.
According to McHenry, Gensler’s hostility toward crypto may have been driven largely by “Senate politics and confirmation politics more than anything else.”
The idea that Gensler’s public enforcement drive was not wholly aligned with his private beliefs adds a new layer of complexity to his legacy—especially considering the aggressive path the SEC took under his leadership.
Fallout from Gensler’s SEC Era
Gensler’s term as SEC Chair, which began in 2021, saw a significant escalation in the agency’s policing of the crypto industry. Major players were hit with lawsuits, compliance demands, and regulatory scrutiny that many viewed as punitive. The backlash was swift and public.
In December 2024, Coinbase CEO Brian Armstrong made headlines when he announced the company would cut ties with law firms that employed former SEC officials involved in what he described as a campaign to “unlawfully kill” the crypto industry.
The following month, crypto exchange Gemini took a strikingly personal shot at Gensler’s academic home. In January 2025, the company declared it would no longer hire MIT graduates unless the university removed Gensler from its teaching faculty.
Despite the controversies, Gensler returned to MIT following his departure from the SEC, where he continues to teach courses on fintech and artificial intelligence.
A Legacy in Question
McHenry’s revelations now cast a shadow over Gensler’s motivations during his time at the SEC. If the former chair truly believed in the potential of digital assets—as McHenry suggests—his public enforcement strategy may have been more about navigating Washington’s political tides than expressing genuine skepticism about crypto’s future.
For an industry still reeling from years of regulatory clashes, the idea that one of its most prominent adversaries may have privately been an ally adds a twist to an already complicated relationship between Washington and Web3.
