Gary Gensler was nominated by President Joe Biden to serve as the Chair of the U.S. Securities and Exchange Commission (SEC) on February 3, 2021, confirmed by the U.S. Senate on April 14, 2021, and sworn into office on April 17, 2021. Since then, he has been a controversial figure in the crypto community, with some calling him “crypto public enemy number one“. 

Gensler’s Background and SEC Role

Before joining the SEC, Gensler was a professor of the Practice of Global Economics and Management at the MIT Sloan School of Management, co-director of MIT’s Fintech@CSAIL, and senior advisor to the MIT Media Lab Digital Currency Initiative. He was also the former chair of the U.S. Commodity Futures Trading Commission, leading the Obama Administration’s reform of the $400 trillion swaps market. 

As the SEC Chair, Gensler has been vocal about his views on cryptocurrencies and has taken a tough stance on regulating the industry. He has consistently said that all digital tokens, except Bitcoin, fall within the jurisdiction of the SEC. 

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In an interview with New York Magazine in February, Gensler said that “at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group”. 

Controversial Proposals and Statements

One of Gensler’s most controversial proposals is to require more disclosure to investors of how trades are executed, and he wants those reports to be in a format that everyday investors can read. He also wants to expand the group that has to issue reports on execution quality to include large broker-dealers, in addition to market centers. 

Gensler has also been critical of crypto exchanges, stating that they must come into compliance, register with the SEC, deal with conflicts of interest and disclose important information. He has defended securities laws as necessary to protect against fraud and misconduct in the crypto market. 

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Gensler’s tough stance on crypto has led to criticism from some in the industry. Some have accused him of hurting the little guys for Wall Street. Others have accused him of being clueless about crypto. 

Conclusion

Gary Gensler’s tough stance on regulating the crypto industry has made him a controversial figure in the community. While some have praised his efforts to protect investors, others have accused him of being anti-crypto and hurting the industry. As the SEC Chair, Gensler will likely continue to play a significant role in shaping the future of the crypto industry.

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Written by Agbo Obinnaya.

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