Gensler's Last Stand: What the Outgoing SEC Chair Really Thinks About Crypto, Before Trump Takes Over

With Trump’s inauguration just around the corner, Gary Gensler gave his final interviews to CNBC and Yahoo Finance on January 14. Here’s what the departing SEC boss actually said about crypto, markets, and whether his legacy will survive the regime change.

The Core Tension: Crypto Gets Special Treatment, But 99% of Tokens Don’t

This is the most important takeaway from Gensler’s exit interviews. He drew a sharp line: Bitcoin and Ethereum are not securities—he said this explicitly, multiple times. But those other thousands of tokens? Different story.

Here’s how he framed it: Bitcoin and Ethereum make up 70-80% of the crypto market. The rest? Projects that “investors are essentially investing or gambling on” without proper disclosure. His argument: if there are fundamentals, securities law requires disclosure. If there aren’t, that’s the investor’s problem.

When pressed on whether Bitcoin has intrinsic value or will be remembered like the tulip bubble, Gensler dodged the philosophical question. Instead: “7 billion people want to trade it. We’ve had gold for 10,000 years; maybe Bitcoin is the modern version.”

Why the Court Losses Don’t Break Him

Yes, Gensler lost 4 out of 5 court challenges to his rules—more than the previous three SEC chairs combined. But listen to how he spun it:

“The courts are reinterpreting the law… we developed 46 important rules. The vast majority have been implemented and people benefit from them now.”

Translation: Even if some rules got struck down, the ones that stuck are foundational—like disclosure requirements for executives’ compensation, settlement cycle reforms (now T+1), and money market fund regulations. He’s betting these won’t be touched.

The Spot Bitcoin/Ethereum ETF Paradox

Gensler approved spot Bitcoin and Ethereum ETFs—something crypto advocates celebrate as a win. But he framed it differently: the courts “forced” him to approve them. Then he emphasized that spot ETFs are more regulated and have lower fees than traditional crypto trading.

Translation: He’s claiming he protected retail investors by channeling them into regulated vehicles, not that he suddenly believes in crypto.

On Those Crypto Supporters Who Helped Trump Win

Gensler dismissed the idea that crypto voters swung the election. His take: “Voters are smart enough to know they vote based on inflation or other economic matters. I don’t see signs that cryptocurrencies were a significant factor.”

But his highway traffic analogy reveals his real stance: “We have rules for hybrid cars and electric vehicles—they all follow the same traffic laws. Crypto is non-compliant.”

The Real Risks He’s Worried About

Forget crypto for a moment. Gensler cited the biggest market risks as:

1. Policy uncertainty during the transition
2. Leverage and low margins in repo markets and macro hedge funds
3. AI risks (which he acknowledged are productive but still risky)

Crypto didn’t make his top-3 risks list. That says something.

The Legacy Question

Will Trump’s SEC undo Gensler’s work? Gensler seemed confident some reforms are irreversible—settlement cycles, privacy rules, disclosure standards. “I can’t imagine anyone wanting to return to longer settlement periods,” he said.

But on crypto enforcement? That’s likely to soften. The next SEC leadership will probably take a lighter touch on token projects.

The Bottom Line

Gensler leaves as a regulator who believed crypto tokens are securities that need to play by existing rules. He approved Bitcoin and Ethereum ETFs not because he loved them, but because courts and market momentum forced his hand. His real target was the 3,000+ other tokens, most of which he saw as speculation devices without proper disclosure.

Whether the next administration agrees is the trillion-dollar question.