Sam Bankman-Fried accuses Gary Gensler of regulatory power abuse amid crypto oversight feud
Sam Bankman-Fried (SBF), currently serving a 25-year prison sentence, has accused former SEC Chair Gary Gensler of abusing regulatory power during the Biden administration. His claims highlight a long-standing dispute between the SEC and the CFTC over control of crypto oversight.
Meanwhile, SBF's legal battles continue as his retrial request faces delays and prosecutors dismiss his arguments as unfounded.
During Gary Gensler's tenure, the SEC took an aggressive stance on cryptocurrency regulation. The agency classified many digital assets as securities under the Howey Test, demanding registration and licensing. Lawsuits were filed against major platforms like Coinbase and Kraken for allegedly offering unlicensed securities and staking services. This approach clashed with the CFTC's narrower focus on Bitcoin derivatives, which did not require the same broad licensing.
SBF has now alleged that Gensler and Senator Elizabeth Warren secretly worked to weaken the CFTC's authority. His legal team spent considerable time in Washington fighting the SEC-CFTC turf war, which was widely documented. The rivalry between the two agencies only ended on March 12, 2026, when a Memorandum of Understanding was signed under new leadership. The agreement, announced by SEC Chair Paul Atkins and CFTC Chair Michael Selig, established coordinated oversight, data sharing, and joint investigations to prevent overlapping regulation. In prison, SBF awaits a decision on his retrial request, which Judge Lewis Kaplan has yet to rule on. Federal prosecutors have called his arguments 'incoherent' and 'fanciful,' while his Second Circuit appeal remains pending. Meanwhile, Caroline Ellison, a key figure in his case, has already been released. Under Trump-nominated SEC Chair Paul Atkins, the regulatory approach has shifted. Instead of enforcement actions, the agency is now working on a licensing framework for crypto businesses, marking a departure from Gensler's stricter policies.
SBF's accusations against Gensler come as the SEC and CFTC have moved past their jurisdictional conflict. The new regulatory framework aims to provide clearer rules for crypto firms. His ongoing legal challenges, however, remain unresolved, with no immediate ruling on his retrial request or appeal.
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