Gensler Breaks Silence After SEC Drops Key Crypto Cases

Former SEC Chairman Gary Gensler appeared on CNBC Wednesday, offering rare remarks following the agency’s sudden reversal on major cryptocurrency enforcement actions. The SEC recently dropped appeals against Ripple and withdrew lawsuits involving industry giants like Kraken and Coinbase—moves that have sparked celebration across the crypto community.

Responding to CNBC host Andrew Ross Sorkin’s question about the “victory laps” taken by crypto CEOs, Gensler declined to address any specific case. Instead, he emphasized that nearly 99% of the crypto market is driven by sentiment rather than substance. He warned that sentiment-driven assets typically face poor outcomes in the long run.

Gensler acknowledged that “something like Bitcoin” may endure due to strong public interest, even drawing comparisons to precious metals like gold. “We humans have a certain fascination with two or three precious metals,” he said. “I don’t think we’ll have the same fascination with 10,000 or 15,000 sentiment tokens.”

Despite his prior approval of a Bitcoin ETF in the U.S.—a landmark moment for institutional crypto adoption—Gensler remains a polarizing figure in the digital asset space. His tenure at the SEC was marked by a strict “regulation by enforcement” approach, which led to high-profile lawsuits and criticism from industry stakeholders.

The SEC’s recent retreat from these legal battles signals a major policy shift under the current administration, potentially paving the way for a more balanced regulatory stance on crypto. While Gensler continues to voice skepticism toward the broader digital asset market, his comments highlight a growing divide between regulatory caution and the industry’s push for legitimacy and growth.