Gary Gensler, the former head of the U.S. Securities and Exchange Commission (SEC), recently spoke out. Eight months after leaving his post, he defended his controversial time leading the agency. Gensler told CNBC he felt proud of his work. He stated he had no regrets about his decisions. His main goal, he said, was to protect investors from risks in the digital currency space.
Gensler stood firm on his views. He claimed most digital tokens have no real value, except for Bitcoin. His strategy focused on stopping what he called “dangerous assets” from harming everyday investors. He warned that for the 5% to 10% of Americans who invest in crypto, it is a highly risky and speculative asset.
However, lawyer John Deaton quickly challenged Gensler’s story. Deaton is a known supporter of Ripple Labs and its XRP token. He claimed Gensler had secret meetings with Sam Bankman-Fried (SBF), the founder of FTX. Deaton suggested SBF got special access to regulators. This included the SEC, the CFTC, and Congress. Deaton pointed out that Gensler met SBF privately even though he later called SBF a “Bernie Madoff of cryptocurrencies.”
Deaton used posts on X (formerly Twitter) to back his claims. He highlighted that SBF gave more money to the Democratic Party than George Soros. During SBF’s trial, his former partner, Caroline Ellison, testified about political donations. She said SBF gave $10 million to the Biden administration. This was to get closer to Gensler and other officials. Another FTX executive, Ryan Salame, also admitted to making illegal campaign contributions.
Deaton further cited a U.S. Congress majority leader. This leader reportedly said Gensler would have allowed a simpler registration process for cryptocurrencies that favored SBF. For Deaton, Gensler’s talk about investor protection was “just a front.” He believed it covered up a special deal for FTX and its founder.
Gensler and “Regulation by Enforcement”
Gensler led the SEC from 2021 to 2025. This period was known for its tough stance on the crypto industry. Many called it “regulation by enforcement.” During his time, the SEC sued major exchanges like Binance and Coinbase. It also labeled many tokens as securities, including Ripple’s XRP.
The XRP case ended in August 2025. Both sides dropped their appeals under Paul Atkins, Gensler’s successor. This decision upheld a 2023 ruling. It stated that XRP sold to the public was not a security. However, XRP sold to institutions was.
Some investors accused Gensler of working with banks to close accounts of crypto companies. They called this “Operation Chokepoint 2.0.” Caitlin Long, CEO of Custodia Bank, said the operation is still active. Federal banking agencies still have ways to pressure the industry. This is true even with changes in the federal government, according to Cryptopolitan.
A New Direction with Paul Atkins
After Gensler left, Paul Atkins took over as SEC chairman. Donald Trump appointed Atkins. He pushed for a different approach. Atkins wanted to create clear rules for the industry. Under his leadership, the SEC stopped automatically calling every token a security. This week, the agency approved general standards for listing exchange-traded funds (ETFs). Matt Hougan, CIO of Bitwise, believes this could “open the market wide.”
This shift is a big change from Gensler’s era. Lawsuits and forced actions were common then. Now, Atkins and the SEC aim to build specific rules for the crypto world. Many see this as a move towards making the sector more stable and accepted.