- President-Elect Joe Biden has reportedly made his choice for the top regulatory agency, the Securities and Exchange Commission
- Biden is expected to announce Gary Gensler as chairman of the SEC in the coming days.
- Gary Gensler is a professor at the MIT Sloan School of Management
According to a Wednesday report, President-elect of the United States, Joe Biden, is set to pick Gary Gensler, a Blockchain scholar, to head the Securities and Exchange Commission (SEC). Reuters reported that his nomination is expected in the coming days.
If confirmed, Gensler will replace current SEC chairman Jay Clayton, who has been widely criticized by Democrats for being too closely aligned to Wall Street interests.
Who is Gary Gensler?
Gary Gensler is a blockchain professor at the Massachusetts Institute of Technology (MIT). He also served as a Goldman Sachs banker Gary.
Gary Gensler’s Experience
Gensler currently leads the Biden transition team’s Federal Reserve, Banking and Securities Regulators Group that is responsible for the central bank, the SEC, and the Commodity Futures Trading Commission (CFTC).
Gensler had previously served as the chairman of the CFTC in President Barack Obama’s administration. During his stint as chairman of the CFTC, he imposed rules on the Wall Street and American banks during the 2008 financial crisis.
When he introduced sweeping measures on financial derivatives responsible for the $400 trillion swaps market that fueled the 2008 crisis, he faced strong lobbying activities from banks.
On the Flipside
- The U.S. Treasury has called for a different approach towards cryptocurrencies.
- The Department plans to ‘centralize’ crypto transactions with new regulations.
- Christine Lagarde, the President of the European Central Bank (ECB), has called for the global regulation of cryptocurrencies.
What does it mean for the Crypto Industry?
Nicolas Morgan, a litigation partner at Paul Hastings law firm, in reacting to Gensler’s possible appointment referred to him as a “knowledgeable and experienced” choice.
Morgan stated that Gensler does not have the criminal prosecution background that previous holders of the office have. This may mean that a more career regulator approach may be taken towards cryptocurrencies in the future.
If approved, Gensler will take over an agency that is at the forefront of governing how the United States government proceeds on areas such as the role of cryptocurrencies and blockchain, among other concerns breaking new ground.
Although neither Joe Buren’s camp nor Gary Gensler have reacted to the report, it comes days after Joe Biden named Rhode Island Governor Gina Raimondo as Commerce Secretary.
Raimondo was a venture capitalist and co-founder of Point Judith Capital. She will be responsible for setting U.S. trade policies at home and abroad, most notably the new administration’s approach to China.