Former Representative Patrick McHenry believes that the anti-crypto stance of former SEC Chairman Gary Gensler stems from political calculations in the Senate.
Patrick McHenry, who plays a crucial role in overseeing U.S. financial policy from 2023-2025, recently made notable remarks about Gary Gensler, the former Chairman of the U.S. Securities and Exchange Commission (SEC). In the Crypto in America podcast, McHenry affirmed a clear difference between Gensler's personal views on digital assets and the legal actions he took as SEC Chairman.
"No. Gensler has a complicated history: he saw the value of digital assets, he was in a position to act, yet he tried to strangle them," McHenry responded when asked if Gensler's personal views aligned with his public stance.
This observation comes in a context where previous U.S. crypto policies are being re-examined. McHenry revealed he had once hoped Gensler "would not be this bad" when taking charge at the SEC, partly due to his crypto expertise.
Political Motives Behind Anti-Crypto Policy
According to McHenry, despite Gensler's deep understanding of cryptocurrency, his actions reflect a different motive: "You can talk to him about content structure, about the legal aspects of the issue, and the conversation is very rational," however, the former Representative strongly criticized the conclusions and actions Gensler subsequently took.
McHenry concluded that Gensler's views on crypto depend "more on Senate politics and the confirmation process than anything else." This observation suggests that Gensler may have adjusted his stance to align with powerful Senate members who have a significant say in his confirmation and retention.
During his congressional tenure, McHenry has repeatedly publicly criticized the SEC under Gensler, especially regarding the lack of clarity in classifying tokens as securities or commodities. The peak of these confrontations occurred during a Congressional hearing in April 2023, when Gensler consistently refused to answer whether ether is a security.
Under Gensler's leadership, the SEC launched a large-scale legal campaign targeting the cryptocurrency industry, suing top companies like Coinbase, Ripple, and Binance. These actions created an uncertain legal environment, hindering the development of the crypto ecosystem in the United States.
