Crypto: Ex-SEC Chair Gary Gensler Makes His Return to MIT

Thrown out of the SEC, Gary Gensler did not take long to find a soft landing. Far from disappearing from the financial landscape, he resumes his position as a professor at MIT, where he will teach and co-direct a program combining finance and artificial intelligence. A logical career shift? Not so sure. Before waging war on cryptos as a regulator, Gensler explained to his students that most digital assets were not financial securities. A great contradiction that does not go unnoticed in the crypto ecosystem.

Gensler and crypto: a confusing double talk

From 2018 to 2021, Gary Gensler taught a course titled “Blockchain and Money” at MIT. He stated that “three quarters of the crypto market is not subject to securities law”. Algorand? “Excellent technology,” he said back then.

However, once in charge of the SEC, he radically changed his tone. Under his leadership, Algorand was classified as a non-compliant financial security, and exchange platforms like Binance and Coinbase were vigorously prosecuted.

The return of Gensler to the university leaves a bitter taste in the crypto industry. Can one be both a pro-crypto professor and a ruthless regulator? The inconsistency is glaring and causes gritting of teeth.

🚨NEW: Former @SECGov Chair @GenslerArchive has returned to @MIT where he will take up the role of Professor of the Practice in the Global Economics and Management Group and the Finance Group. 

According to the university, he will teach and conduct research on artificial… https://t.co/O8xo8InRJ5 pic.twitter.com/1hTkwCQoiM

— Eleanor Terrett (@EleanorTerrett) January 29, 2025

Crypto supporters, who hoped for a softening after his departure from the SEC, watch his return with skepticism. Because while he joins MIT, crypto regulation in the United States remains shrouded in fog.

Crypto regulation: a debate that does not weaken

Gary Gensler’s tenure at the SEC has left a lasting impact on the crypto ecosystem. His term resulted in an avalanche of lawsuits and regulatory uncertainty that hinders the adoption of digital assets.

💥JUST IN: Tyler Winklevoss says as long as MIT has any association with Gary Gensler, @Gemini will not hire any graduates from MIT.

Not even interns for a summer intern program. pic.twitter.com/T0lsOYpBKo

— Altcoin Daily (@AltcoinDailyio) January 30, 2025

• More than 50 complaints filed against crypto companies;
• Billions of dollars in fines imposed on platforms deemed non-compliant;
• Bitcoin ETFs rejected in droves, before a late turnaround;
• Algorand, once praised by Gensler, labeled as an illegal asset;
• A flight of crypto companies out of the United States, due to regulatory uncertainty.

Market players hoped that his departure would mark a turning point, but the future remains uncertain. Should we expect a more lenient approach under a new administration? Nothing is less certain.

In the meantime, Gensler returns to teaching. His future students will undoubtedly have a burning question in mind: what does he really think about cryptos?

Before leaving the SEC, Gensler threw one last jab: the crypto did not help Trump win. A stone in the pond that likely did not please staunch bitcoin defenders. It remains to be seen whether he will change his tune again now that he has returned to his professor’s role.