SEC Chair Gary Gensler’s Private Crypto Praise Exposed by Former Rep. McHenry

Behind closed doors, SEC Chair Gary Gensler allegedly championed crypto—while publicly tightening the regulatory screws. Former Rep. Patrick McHenry drops the bombshell, revealing the stark contrast between Gensler’s private enthusiasm and public crackdowns.

Hypocrisy or strategy? Either way, it’s peak Washington: say one thing to innovators, another to the cameras. Meanwhile, the crypto markets keep rolling their eyes—and their tokens.

McHenry noted that during his tenure at Massachusetts Institute of Technology (MIT), Gensler recognized the potential of blockchain technology and expressed an appreciation for the value digital assets could bring to financial systems.

According to McHenry, Gensler’s approach to cryptocurrency changed significantly after taking on the role of SEC chair. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry stated. “And I mean, just the level of dismay,” he added.

The Former Representative described his regulatory discussions with Gensler as frequently perplexing. According to McHenry, conversations around legal frameworks and structural issues often began constructively but soon turned contradictory. He noted that the former SEC chair WOULD initially appear to agree on key points, only to later reverse his position on the same issues.

Additionally, McHenry suggested that Gensler’s hardline public stance on crypto may have been influenced more by political dynamics than by his personal views on the technology. 

During Gensler’s time as chair of the SEC, the agency adopted a markedly aggressive approach to regulating the crypto sector—an approach that drew sharp criticism from industry leaders and lawmakers alike. 

The SEC’s string of enforcement actions and Gensler’s refusal to offer clear regulatory guidance fostered a tense relationship between his administration and digital asset firms, fueling widespread frustration over what many saw as regulation by enforcement rather than collaboration.

As debates over crypto regulation continue to shape the future of finance, the contrast between private viewpoints and public policy underscores the ongoing need for greater transparency and consistency in how digital assets are governed.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the shiba inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.