Gensler Defends Crypto Crackdown as Trump Administration Shifts SEC Toward Softer Rules

Paul Atkins, the current chairman of the U.S. Securities and Exchange Commission (SEC), and Gary Gensler, the agency’s former chief, both appeared before the media this week to discuss the regulatory atmosphere under the current administration, particularly policies proposed by President Donald Trump.

Former Commission Chair Gensler Defends Tough Crypto Stance

Since leaving office early this year, Gensler has kept a low profile, devoting himself to teaching at the MIT Sloan School of Management. In a long-awaited media comeback, the former SEC chair said he has no remorse over the agency’s strict stance on crypto regulation and enforcement during his tenure.

His comments came in a Wednesday interview with CNBC reporter Sara Eisen. During the conversation, Eisen asked the former SEC chair how he felt about the agency—now led by Paul Atkins—undoing many of the crypto rules he had put in place. She added that reports suggested many investors were happy he was no longer in charge of the commission.

Gensler responded to the comment, saying he was proud of his tenure and believed he made the right calls to protect investors. He pointed to several high-profile cases, such as Sam Bankman-Fried’s FTX scandal.

We were consistently trying to ensure for 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

The commission’s former chief also maintained his previous stance that digital assets are highly risky and speculative ventures. 

Gensler served as SEC chairman from 2021 until January 20, 2025. During his time at the agency, many within the crypto space criticized the former SEC chief’s strict approach to digital assets. Gensler’s tenure was marked by several lawsuits against top crypto firms, some of which have been dropped by the current administration.

Trump Pushes SEC Toward Softer Stance and Reduced Reporting Requirements

As part of Trump’s pro-crypto administration, the commission has taken a softer stance on crypto-related issues. Besides dropping lawsuits and investigations against many crypto firms, it has clarified assets classified as securities. The administration is also advancing pro-crypto bills, such as the BITCOIN Act, which seeks to establish a digital asset reserve.

On Monday, Trump directed the SEC to move from the current quarterly reporting for U.S. companies to twice-a-year instead. Atkins promptly responded to the proposed rule change, noting that the commission would review and potentially enact it.

Atkins suggested that companies and shareholders should be the ones to determine how often earnings reports are released, saying the market can naturally decide the right pace. Gensler, however, argued that investors should make their voices heard, warning that reducing disclosures to twice a year could undermine transparency and increase market volatility.