Gary Gensler's Rocky Relationship With the Crypto Industry Comes to an End

CNBC anchor Joe Kernen’s last interview with SEC Chair Gary Gensler was certainly spirited. As Gensler prepares to step down on January 20, their discussion featured some pointed exchanges on crypto policies and Bitcoin’s classification.

Gensler stated that the SEC never claimed Bitcoin is a security. However, when pressed by Kernen to share his thoughts, he said this:

“I think Bitcoin is a highly speculative volatile asset, but with 7 billion people around the globe, 7 billion people want to trade it. Just like we had gold for 10,000 years, we have Bitcoin. It might be something else in the future as well.”

Continuing his remarks on the crypto landscape, he said:

“These other thousands of projects need to show their use case and show that they actually have fundamentals underlying them or they won’t persist.”

After being (jokingly) grilled by Kernen about owning Bitcoin, Gensler admitted that he never owned any cryptos.

Who is Gary Gensler?

During his tenure as the SEC Chair, Gensler was a staunch critic of cryptocurrencies and the industry. One of his main criticisms was for its highly speculative nature, highlighting the speculative aspect of most crypto projects and likening them to high-risk ventures with uncertain returns.

He also stated that the majority of crypto projects, excluding Bitcoin, closely resemble high-risk venture capital endeavors with limited potential returns for investors.

During the outgoing Chair’s tenure at the SEC, nearly 100 enforcement actions were initiated, reflecting the robust regulatory approach implemented during his leadership.

Despite this, cryptocurrency accessibility increased significantly during Gensler’s tenure. In January 2024, the SEC approved exchange-traded funds tracking the spot price of Bitcoin.

These ETFs made it easier for investors to gain exposure to Bitcoin without the need for substantial upfront investments typically associated with direct Bitcoin purchases.

Overall, many crypto enthusiasts are happy to see him go next week, but we have yet to see how his replacement will impact the crypto world.

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