Former SEC Chair Gensler Defends Crypto Crackdown, Highlights Risks in Market

Gary Gensler, former chair of the U.S. Securities and Exchange Commission (SEC), has publicly defended his regulatory approach to cryptocurrencies during his tenure. In a CNBC interview, Gensler emphasized the necessity of investor protection, citing enforcement actions against fraudulent actors like Sam Bankman-Fried.

Gensler pointed to reforms such as shortening the stock settlement cycle as evidence of his effective leadership. He argued that the crypto market remains fraught with risks, driven by hype rather than fundamentals. "Much of this space trades on momentum, not substance," he remarked, underscoring the SEC's role in curbing misconduct.

The former chair acknowledged differing philosophies among SEC leaders but stood by his aggressive stance. His comments reflect ongoing tensions between innovation and regulation in digital assets, with implications for exchanges and tokens navigating compliance.