Crypto is ‘rife with bad actors’

Crypto is less than 1% of U.S. financial markets, yet it’s riddled with “scams,” Gensler said. 

“I’ve never seen a field that is so wrapped up in sentiment and not so much about fundamentals,” Gensler said. “Of these 10,000 to 15,000 projects, many of them will not survive. They’re like venture capital investments. They’re not going to survive.”

Gensler’s comments come as he prepares to step down on January 20, the day of President-elect Donald Trump’s inauguration. 

Gensler and Crypto

Biden-appointed Gensler has vocally expressed skepticism toward crypto regulation. He came out forcefully against the FIT21 bill after it was passed in the House. 

The relationship between the crypto industry and Gensler has been contentious. The industry mostly views Gensler with skepticism and frustration. Many believe his strict enforcement approach and classifying most crypto assets as securities have stifled innovation and created legal uncertainty​. 

Gensler repeatedly asserted that most cryptocurrencies qualify as securities, urging firms to register with the SEC.

Critics within the industry argue that compliance is impractical due to regulatory frameworks designed for traditional financial entities.

Reflecting on his tenure, Gensler acknowledged the challenges but emphasized the SEC’s role in building on prior efforts. 

“I’m proud of what we’ve accomplished, but there’s still work to be done,” he said.