Gary Gensler, President Joe Biden’s choice to head the US Securities and Exchange Commission (SEC), has announced his policy on bitcoin and other cryptocurrencies when he is confirmed as SEC chairman. Gensler is a professor at MIT who teaches cryptocurrencies. He was previously chairman of the Commodity Futures Trading Commission (CFTC).
SEC nominee Gary Gensler talks about Bitcoin regulation
Professor Gary Gensler spoke about what his focus will be on 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 Digital Currency Initiative. He teaches blockchain technology, digital currencies, financial technology and public policy. Gensler is also a former Goldman Sachs partner who served as chairman of the CFTC during the Obama administration.
During his confirmation hearing, he was asked what Congress and the SEC could do to create a more forward-thinking regulatory environment for innovators in the crypto space.
“While teaching at MIT on these topics, these innovations were a catalyst for change,” Gensler began, adding:
Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they have also raised new issues of investor protection that we have yet to address.
“I think so, if I am confirmed at the SEC, I will work with fellow commissioners to promote new innovation, but also to ensure investor protection,” he continued.
Gensler said, “To the extent that someone is offering an investment contract or security that is under the jurisdiction of the SEC, and there is a stock exchange working there, we need to make sure there is investor protection.”
On the other hand: “If it is not so, and it is a commodity, as bitcoin is considered, then it is a question for Congress … or it is possibly a question for the Commodity Futures Trading Commission , “he described.
Furthermore, the professor also said that the SEC must ensure that crypto-markets are “free from fraud and manipulation”, and execute:
I think this is honestly the biggest challenge because some markets, usually overseas, are full of fraud.
What do you think of the incoming SEC chairman’s policy on bitcoin? Let us know in the comments below.
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