Gary Gensler Doubles Down: Crypto Enforcement Actions Were Fully Justified
SEC Chair defends aggressive regulatory stance amid industry backlash
Gensler's enforcement blitz targets crypto's wild west mentality
Regulator claims pattern of 'non-compliance' forced his hand
Industry critics call it regulatory overreach—Gensler calls it necessary protection
Another classic case of regulators shutting the barn door after the digital horses have bolted
Gensler Stood By Enforcement Record
According to his interview on CNBC’s “Squawk Box,” Gensler argued that many crypto tokens trade on HYPE more than on underlying business metrics, and he used rough figures to note there are “5 or 10 thousand” such tokens in circulation.
His comments echoed past statements that a large share of crypto tokens should be treated under securities laws. Those remarks prompted fresh debate online, with some industry figures calling his stance harmful to innovation and others defending the need for strict oversight.
A second line of argument around Gensler’s legacy is tied to a notable policy outcome: spot Bitcoin exchange-traded products were approved while he was chair.
On January 10, 2024, the SEC issued orders allowing a set of spot bitcoin ETP listings — a move observers said reflected both legal pressure and shifts inside the agency. That approval has been cited as one of the major market milestones from his tenure.
Regulatory Shift Under New Leadership
Reports have documented a clear change in tone at the SEC after leadership moved to Paul Atkins. Since that shift, the agency has stepped back from several high-profile cases that were lodged during Gensler’s time in office.
Lawsuits and investigations involving big exchanges — including Binance, Coinbase, and Kraken — have been dismissed or closed, and the long-running dispute with Ripple has come to an end following recent filings. Market watchers say this marks a meaningful pivot in enforcement posture at the regulator.
Reaction on social platforms was swift. Some prominent crypto voices called Gensler’s comments unacceptable; posts resharing the interview included sharp criticism from known industry figures.
At the same time, exchange leaders publicly emphasized that what matters now is clear rules and investor protections, not personal attacks.
Featured image from Tom Williams—CQ-Roll Call, Inc/Getty Images, chart from TradingView
