SEC’s Gensler Firm on Crypto Enforcement Regrets

Ex-SEC Chairman Gary Gensler defended his crypto enforcement strategy in a September 17th interview, citing it as crucial for investor protection, amidst criticisms of his regulatory approach.

Gensler’s stance highlights ongoing debates about crypto regulation’s impact on market stability and innovation, influencing current SEC policies and crypto market responses.

Gensler’s Crypto Stance and Policy Shifts

Gensler’s remarks reiterated his unwavering support for the enforcement actions taken during his tenure. Labeling cryptocurrencies as “highly speculative,” he stressed the SEC’s ongoing mission to safeguard investor interests. He criticized certain market behaviors, exemplified by the FTX scandal and actions against high-profile entities like Binance and Coinbase.

Shifts in SEC policy following Gensler’s term include less stringent approaches under current Chair Paul Atkins, who is noted for his intention to simplify ETF regulations while affirming that most tokens do not qualify as securities. This regulatory leniency correlates with a resurgence in market activities, including increased institutional investment in crypto ETFs.

“We were consistently trying to ensure investor protection. And in the midst of it, we had a lot of fraudsters—look at Sam Bankman-Fried, and he wasn’t alone.” – Gary Gensler, Former Chair, U.S. Securities and Exchange Commission (SEC)

Market Impact and Expert Insights on Regulation

Did you know?
Gensler’s “regulation by enforcement” mirrored earlier U.S. regulatory campaigns against unregistered securities, akin to Operation Chokepoint 2.0, yet crystallized on token classification controversies.

According to CoinMarketCap, Bitcoin currently trades at $115,598.02. Its market capitalization is at formatNumber(2303093525259.68, 2), with a dominant market share of 57.19%. Recent fluctuations show a 1.47% price decrease over 24 hours, yet a 12.88% increase over 90 days, as recorded on September 20, 2025.

Experts from the Coincu research team suggest that the relaxation of crypto policies post-Gensler may stimulate U.S. market growth. However, historical resistance toward regulating cryptocurrencies emphasizes the need for balanced oversight, ensuring both innovation and protection coexist effectively within the sector.