Former U.S. Representative Patrick McHenry claims that ex-SEC Chair Gary Gensler privately held favorable views on digital assets, despite his notoriously hardline public stance during his time at the regulatory agency.
Speaking on the Crypto in America podcast on May 13, McHenry shared that private conversations with Gensler revealed a more supportive attitude toward cryptocurrencies and blockchain technology. “Nope,” McHenry replied when asked if Gensler was as anti-crypto in private as he appeared in public. According to McHenry, Gensler “saw the value of digital assets” and recognized the broader potential of blockchain—views he reportedly expressed during his academic tenure at MIT.
McHenry’s revelations highlight a stark contrast between Gensler’s academic enthusiasm and his later actions at the SEC. While at MIT, Gensler not only taught courses on blockchain but also contributed to early conceptualizations of mechanisms like the airdrop, according to Gerald Gallagher, general counsel at Sei Labs.
Yet Gensler’s tone changed sharply after assuming the SEC chairmanship. His tenure became synonymous with sweeping enforcement actions targeting major crypto firms—moves that drew widespread criticism across the industry. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry admitted. “And I mean, just the level of dismay.”
The contrast between Gensler’s private sentiments and public policy decisions continues to spark debate, especially as new leadership at the SEC attempts to chart a more industry-friendly regulatory path.
McHenry: Gensler’s Stance Was Driven by Politics
During the podcast, McHenry described his conversations with Gensler as “confusing,” explaining that discussions on crypto legal frameworks often began with agreement but would quickly devolve into contradictions.
McHenry suggested that Gensler’s harsh public stance on crypto wasn’t rooted in policy, but in politics—particularly Senate confirmation dynamics. While Gensler had previously spoken positively about digital assets and blockchain while teaching at MIT, his tone as SEC chair changed drastically. Under his leadership beginning in 2021, the SEC pursued more than 100 enforcement actions against crypto firms.
That aggressive approach alienated much of the crypto industry and triggered strong pushback from major players. In late 2024, Coinbase CEO Brian Armstrong announced the exchange would no longer work with law firms linked to former SEC staff who supported what he called an “unlawful war” against crypto. A month later, Gemini took it further, vowing not to hire MIT graduates until the university severed ties with Gensler, who returned there to teach after leaving the SEC on January 20, 2025.
Quick Facts
- Former SEC Chair Gary Gensler privately acknowledged the value of digital assets, according to Patrick McHenry.
- Gensler’s public tenure at the SEC involved over 100 regulatory actions against crypto firms.
- Industry leaders, including Coinbase’s CEO, criticized Gensler’s approach, leading to severed ties with associated law firms.
- Gensler resigned from the SEC in January 2025 and returned to academia at MIT.
