Gary Gensler, the SEC chair everyone loves to hate—or hate to love—is on his way out, leaving behind a trail of lawsuits, crypto crackdowns, and some very opinionated quotes. In his final interview before stepping down, Gary dropped a surprising line: Bitcoin is different. Yes, the same guy who spent years hammering crypto firms with lawsuits just gave what sounded suspiciously like a proper nod of approval. He admitted that Bitcoin is never going anywhere. But he also made it clear (professionally of course) that the distaste ‘crypto president’ Donald Trump had for him is very much mutual. Bitcoin isn’t a security—But that’s where the praise ends For anyone keeping score, Gary has spent the past four years waging what many called a war on crypto. The SEC filed countless lawsuits against crypto companies, citing violations of securities laws. But in this interview, Gary made it clear: Bitcoin is not a security. “It’s highly speculative,” he admitted, “but it’s not under securities laws like those other 10,000 tokens.” He wasn’t subtle about why he thinks those other tokens are problematic. “The crypto field has been noncompliant with securities laws for years,” he said. “The public gets hurt when projects don’t make proper disclosures or engage in fraud.” His disdain for what he called “speculative” altcoins came through loud and clear. Still, Bitcoin got a rare pass. Gary compared it to gold, acknowledging its global appeal. “Seven billion people around the world want to trade it, just like they’ve traded gold for thousands of years,” he said. “Bitcoin will stay for the longest time to come.” Coming from a man who’s been labeled crypto’s worst enemy, that’s saying something. Critics slam Gary’s enforcement-first approach Gary didn’t dodge the tough questions about his time at the SEC. Critics have long argued that the agency under his watch focused too much on enforcement through litigation instead of providing clear regulatory guidelines. The Coinbase case, where a judge asked the SEC to “explain itself,” was a prime example. When pressed, Gary defended his approach. “We’re a law enforcement agency. Congress makes the laws; we enforce them,” he said. But that explanation hasn’t satisfied everyone. Critics argue that the lack of clarity has stifled innovation and driven companies away from the U.S. Take Robinhood, for example. Just this week, two of its broker-dealers agreed to pay $45 million to settle charges of violating more than ten securities law provisions. It’s a hefty price tag, but Gary framed it as a win for investors. “The rules exist to protect the public,” he said, doubling down on his enforcement-first mindset. The Broader Markets Took Priority While crypto hogged the spotlight, Gary reminded everyone that it wasn’t his main focus. He pointed out the $120 trillion capital markets and the $28 trillion U.S. Treasury market as areas where the SEC made significant reforms. One major change was shortening settlement cycles for stock trades. “Investors can now get their money in one day instead of two,” he said, describing it as a win for everyday traders. The SEC also tackled issues in the Treasury market, working with Janet Yellen and Jay Powell to stabilize the $28 trillion sector. “These reforms were crucial as the market is expected to grow to $36 trillion in four years,” he added. Gary was particularly proud of corporate governance reforms. He highlighted rules that now prevent insiders from selling stock immediately after filing plans, requiring a three-month waiting period instead. He also introduced measures forcing executives to return compensation tied to false financial statements. The conversation then moved to ESG (Environmental, Social, and Governance) and diversity initiatives, areas that have become flashpoints in corporate America. Gary clarified that the SEC’s role wasn’t to regulate climate or workforce issues but to ensure consistent disclosures. “The top 1,000 companies were already making climate risk disclosures. We just made sure they were consistent,” he said. However, these moves didn’t come without backlash. Many Fortune 500 companies have since rolled back their ESG and DEI (Diversity, Equity, and Inclusion) programs. Gary seemed unbothered. “Investors decide what’s relevant, not regulators,” he said, sticking to his materiality-driven approach. AI and the future of finance Gary touched briefly on artificial intelligence, calling it “transformative” but warning against “AI-washing.” He urged companies to be honest about their capabilities, drawing parallels to the SEC’s push for transparency in other areas. He also addressed the rise of prediction markets, like those run by Kalshi. When asked about Donald Trump Jr.’s involvement with the platform, Gary avoided drama. “Markets, whether they’re stocks, bonds, or prediction platforms, are all about forecasting future cash flows,” he said. Despite the criticism, Gary stood by his record. “We put in place fundamental reforms for three-quarters of the capital markets,” he said, pointing to achievements like insider trading rules and agreements with China on audit inspections. Gary didn’t hold back when the conversation turned to President-elect Donald Trump, who has gained a reputation as the “crypto president.” He addressed the influx of crypto money into Trump’s campaign, calling it a significant, albeit not defining, part of the election. “Money from the crypto field was raised, sure,” he said. “But I don’t think that’s what this election was about.” Gary wasted no time defending his crackdown on crypto during Trump’s rise to power. He pointed to what he called a rampant disregard for securities laws across the industry, stating, “The crypto field, as speculative as it is, has not complied with anti-money laundering laws, sanctions laws, or securities laws.” When asked how he felt about Trump’s pro-crypto stance, Gary remained firm. “The laws are there, and Congress can change them if they want. But until that happens, compliance isn’t optional,” he said. “Rules should be based on reality, not sentiment and speculations.” Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
