Gary Gensler, the former head of the U.S. Securities and Exchange Commission, has come to the defense of his tenure, saying he regretted nothing about his firm stance on crypto regulation during his time in office.
In a rare interview since leaving his position in January, Gensler explained to CNBC’s Sara Eisen that his law enforcement-led agenda was all about putting investor protections first in a marketplace he characterized repeatedly as “very risky, very speculative.”
He pointed to the FTX collapse and Sam Bankman-Fried’s fraud as examples of the risk in the sector, and said the SEC under his leadership remained focused on protecting the public from pervasive wrongdoing.
Transition of Power Brings Shift in Crypto Policy
Gensler departed on January 20, just as President Donald Trump began his time in the White House after declaring during the campaign that he would “fire him on day one” if elected.
Since then, the SEC, under acting Chair Mark Uyeda and now Chair Paul Atkins, has diverged dramatically from Gensler’s enforcement-oriented playbook.
At least a couple of lawsuits against large crypto companies were already dismissed in 2025, demonstrating a more permissive view towards them.
The Commission’s current view is that “very few tokens are securities,” and they are not anywhere close to Gensler’s view that many crypto assets are subject to securities law.
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Gensler Faces Criticism Over Enforcement-First Approach
Throughout his years at the SEC (2021-2025), Gensler attracted considerable criticism from the cryptocurrency industry and some lawmakers, who described his methodology as a “regulation by enforcement” paradigm.
The role began amid some wild markets, the collapse of FTX, the sudden prevalence of bankruptcies across the marketplace, and general turmoil in the crypto industry.
While he continued to claim that they were necessary to protect investors, many called the lawsuits in key cases against major cryptocurrency businesses a knee-jerk reaction to innovation, which created further distrust between regulators and the industry.
While many of those cases have been dismissed in the interim, and under new leadership, the question remains whether Gensler’s methods were too aggressive for a new digital asset market.
Also Read: Grayscale Launches First U.S. Multi-Asset Crypto ETP After SEC Approval
SEC Under Trump Eyes Broader Policy Changes
Besides taking a new stance on cryptocurrency, the Trump administration suggested more general modifications to U.S. securities regulation.
For example, the former president suggested allowing companies to report on a semiannual basis, rather than quarterly.
Then-SEC Chair Paul Atkins and the commission indicated that they would evaluate and move forward with the proposal and said the market is always the best judge of the right timing.
In contrast, Gensler argued that decreased reporting would lead to reduced transparency, thereby increasing market risk and making less frequent disclosures a disincentive.
Atkins Signals Softer Oversight and Pro-Crypto Stance
Since he became SEC Chair, Paul Atkins has clearly indicated that he will take a more relaxed regulatory approach than his predecessor.
He has advocated for pro-crypto policies, expedited approvals for cryptocurrency exchange-traded funds (ETFs), and supported measures intended to put the U.S. in a position to lead in the digital asset space, according to UnoCrypto.
While supporters contend that this approach is encouraging innovation and growth, critics worry that it will present an unreasonable risk to investors in an already volatile sector.
Comparing Gensler’s aggressive enforcement style to Atkins’s more market-driven agenda highlights the clear divide in regulatory philosophy now influencing the future of U.S. financial regulation.