Gary Gensler, President Joe Biden’s election to lead the US Securities and Exchange Commission, will announce his guidelines on Bitcoin and other cryptocurrencies when he is confirmed as chairman of the SEC. Gensler is a professor at MIT and teaches cryptocurrencies. Previously, he was chairman of the Commodity Futures Trading Commission (CFTC).
Gary Gensler, candidate for SEC chairmanship, speaks on Bitcoin regulation
Professor Gary Gensler has spoken about what he will focus on when it comes to Bitcoin and other cryptocurrencies when he is confirmed as chairman of the SEC. His statements were made during his confirmation hearing before the Senate Banking Committee on Tuesday.
Gensler is a professor at the MIT Sloan School of Management, where he is also co-director of Fintech @ CSAIL and senior advisor to the MIT Media Lab’s Digital Currency Initiative. He teaches blockchain technology, digital currency, financial technology, and public order. Gensler is also a former Goldman Sachs partner who served as chairman of the CFTC during the Obama administration.
At his confirmation hearing, he was asked what Congress and the SEC can do to create a more forward-looking regulatory environment for innovators in the crypto space.
“When I was teaching on these topics at MIT, these innovations were a catalyst for change,” Gensler began, adding:
Bitcoin and other cryptocurrencies have brought new considerations to payments and financial inclusion, but they have also raised new investor protection issues that we have yet to consider.
“I think if this were confirmed by the SEC, I would be working with other commissioners to encourage new innovation, but also essentially to ensure investor protection,” he continued.
Gensler stated, “To the extent that someone offers an investment contract or security that falls within the purview of the SEC and operates exchanges there, we need to ensure that there is investor protection.”
On the other hand, “If it isn’t and it’s a commodity like Bitcoin was believed to be, then it’s either a question for Congress … or possibly a question for the Commodity Futures Trading Commission,” he described.
Additionally, the professor said the SEC needs to ensure that crypto markets are “fraud and manipulation free,” explaining the following:
I think that’s the bigger challenge, frankly, because some markets that usually operate overseas have been full of scams.
What do you think of the new SEC chairman’s guidelines on bitcoin? Let us know in the comments below.
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