Back to Markets
Crypto▲ Bullish
Trump Accuses Gensler of Destroying Crypto, Pushes New Rules
Treasury Secretary Bessent reinforces Trump's accusation that Gensler nearly destroyed crypto. New SEC chair Paul Atkins rolls back enforcement. Stablecoin legislation is the linchpin for durable change.
Continue with
President Trump directly accused former SEC Chair Gary Gensler of “nearly destroying” the American crypto industry. Treasury Secretary Scott Bessent reinforced the message, stating that the previous administration’s policies “nearly destroyed the industry.” The coordinated criticism marks the latest signal of a decisive policy pivot away from the enforcement-heavy approach that defined the prior regulatory era.
Trump made the same promise at the Bitcoin 2024 conference in July, telling attendees he would fire Gensler on day one if elected. Gensler’s term ended in January 2025, coinciding with Trump’s inauguration. Paul Atkins, a former SEC commissioner with a documented pro-crypto stance, stepped in as the new chair. Atkins has long advocated for lighter-touch regulation and clearer rules, opposing Gensler’s view that existing securities laws already applied to digital assets.
Trump and Bessent Take Direct Aim at Gensler’s Legacy
The administration is dismantling Gensler-era enforcement policies and pushing for new digital asset frameworks, including stablecoin legislation. Bessent’s quote underscores the administration’s intent. The market should not confuse intent with durable policy.
The Political Timing
Trump’s criticism is not new rhetoric. At the Bitcoin 2024 conference in July, he told attendees he would fire Gensler on day one. The promise became reality when Gensler’s term ended in January 2025, coinciding with Trump’s inauguration. Paul Atkins, a former SEC commissioner with a documented pro-crypto stance, stepped in as the new chair. Atkins has long advocated for lighter-touch regulation and clearer rules, opposing Gensler’s view that existing securities laws already applied to digital assets.
The Atkins Era: Enforcement Rollback and Rulemaking Shift
Within the first months of 2025, the new administration began rolling back the strict regulatory environment Gensler built. Enforcement actions, which had become the SEC’s primary tool for shaping crypto policy, started declining. The shift is a direct reversal of the Gensler approach and has immediate implications for market confidence.
Decline in SEC Enforcement Actions
The enforcement pipeline is shrinking. Fewer cases mean less legal uncertainty for exchanges and token issuers. They also mean less deterrence for bad actors. The market is already pricing in a friendlier SEC. Whether that price holds depends on how quickly Atkins replaces enforcement with explicit rulemaking.
Paul Atkins’ Pro-Crypto Stance
Atkins’ record suggests a willingness to create explicit rules rather than rely on enforcement-by-prosecution. That could unlock institutional capital that waited on the sidelines through the Gensler years. The speed of change matters. Slow rulemaking would leave the market in a grey zone where legal risk persists even without active cases.