Patrick McHenry, the former chair of the U.S. House Committee on Financial Services, revealed on May 14 that former SEC chief Gary Gensler was not as anti-crypto in private as he was in public. He argued that Gensler’s public position was influenced by Senate politics and his previous official role as Chairman of the U.S. Securities and Exchange Commission (SEC).
Researchers noted that the discrepancy between public and private stances may prompt shifts in regulatory frameworks. The analyst also argued that greater alignment between personal and public views could enhance regulatory clarity, benefiting technological advancements and market confidence.
Patrick McHenry says Gensler was pro-crypto in private
🚨SCOOP: @PatrickMcHenry reveals that former SEC chief Gary Gensler was not as anti-crypto in private as he was in public.
“I think it had more to do with Senate politics, and confirmation politics.”
Full episode with the former Chair of @FinancialCmte out tomorrow AM! pic.twitter.com/tj950SV0Kv
— Eleanor Terrett (@EleanorTerrett) May 14, 2025
The U.S. Representative for North Carolina’s 10th congressional district, Patrick McHenry, told Eleanor Terrett in the Crypto of America podcast that the former SEC chair, Gary Gensler, was not anti-crypto in private as he was in public. McHenry noted that Gensler had a complicated history where he saw the value of digital assets, and he was in a position to do something about it, but he was trying to kill the industry.
McHenry also acknowledged that Gensler was the brains behind airdrops, which became the best way for companies in the space to build liquidity. The former chair of the Financial Committee said he believed Gensler would not be that bad as SEC chair.
He expressed his disappointment that he could have a conversation with Gensler about digital assets and would be shocked to see Gensler disagree with the facts he previously agreed on about crypto. McHenry believes it was because of progressive ideology.
“I think it had more to do with Senate politics and confirmation politics than anything else.”
–Patrick McHenry, the former Chairman of the House Financial Services Committee.
The American politician also argued that Elizabeth Warren was justifying her view and contorting herself into an anti-crypto view, yet she didn’t understand the technology. He noted that Gensler understands crypto technology, yet he’s in the same space and comes to the same conclusion about crypto.
The former U.S. House Financial Services Committee leader added that Gensler’s legacy will be defined by turning the once-proud SEC into a rogue agency. He accused the institution of enforcing regulations often without justification, economic analysis, or public engagement.
McHenry believes his revelation could influence how future regulations are crafted. He argued that politically motivated positions may lead to restrictive policies, which may affect the digital industry’s growth.
McHenry also accused Gensler in May 2024 of misleading Congress since the SEC already knew it considered Ethereum’s ether security before attending a hearing where he declined to answer that question. McHenry noted that Gensler refused to answer questions regarding the SEC’s classification of ether in an intentional attempt to misrepresent the commission’s position.
Gensler maintains his stance on crypto
The former SEC Chair said he is not backing down from his views about the cryptocurrency industry as he prepared to end his tenure at the institution in January 2025. He noted that many in the crypto space are not complying with the SEC’s time-tested laws, calling many digital assets highly speculative. He said that people have to question the true use cases of some assets and their value proposition.
The U.S. President pledged to fire Gensler as one of many promises to the crypto ecosystem. Gensler later gave his resignation notice, and the Trump administration replaced him with well-known crypto lawyer Paul Atkins. Over the years, Atkins has made it clear that he favors clearer regulations of virtual assets that don’t stifle innovation or impose unnecessary oversight.
In January, the former SEC Chair refuted claims that the SEC’s approach to regulating crypto played a role in the Democrats’ loss in the 2024 presidential election. He pointed to other issues like inflation and the economy at large as determining factors.
Despite Gensler’s concerns about digital assets, he allowed BlackRock and 10 other asset managers to launch spot Bitcoin exchange-traded funds in January 2024. These funds allow investors to get exposure to the world’s largest cryptocurrency without having to own it.
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