Gary Gensler, the outgoing Chair of the U.S. Securities and Exchange Commission (SEC), reiterated his critical view of the cryptocurrency industry, describing it as "rife with bad actors." Speaking to Bloomberg TV ahead of his planned departure on Jan 20, Gensler reflected on his tenure, emphasizing his pride in the SEC’s efforts to address misconduct in the digital asset sector while acknowledging there is more work to be done. He credited much of the groundwork to his predecessors, including former SEC Chair Jay Clayton.

During Gensler's leadership, the SEC initiated over 100 cryptocurrency-related enforcement actions, surpassing the 80 cases pursued under Clayton’s term from 2017 to 2020. Gensler described the crypto market as largely built on noncompliance, dividing the space into Bitcoin and "everything else." He argued that most digital assets qualify as securities and must adhere to SEC regulations. However, his enforcement-heavy approach has drawn criticism from industry participants, who claim the current framework is ill-suited for digital assets and hinders innovation.

Critics of Gensler’s tenure highlight the tension between the SEC and the cryptocurrency industry, with high-profile enforcement actions dominating headlines. Under Gensler’s predecessor, the SEC tackled the initial coin offering boom and brought notable cases against companies such as Ripple and Kik. Gensler maintained that the agency’s stance on crypto enforcement has remained consistent over time, regardless of political leadership.

President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner, to succeed Gensler. Known for his crypto-friendly views, Atkins is expected to adopt a more lenient regulatory approach toward digital assets. His nomination comes as the crypto sector faces intense scrutiny, with significant cases involving major figures.

Gensler downplayed the criticism of his leadership, citing former Secretary of State Hillary Clinton’s perspective on public service: "If you’re not willing to be attacked, you can’t go into the public square and debate policy." He also noted that less than 10% of the public is involved in cryptocurrencies, which he argued limits the broader impact of the industry.

As Gensler prepares to step down, the SEC's future direction remains uncertain. Atkins' expected appointment signals a potential shift in the agency’s approach to digital assets, marking a contrast to Gensler’s aggressive enforcement strategy. The crypto industry, long at odds with the SEC, will be closely watching the transition to determine its implications for regulation and compliance.