New SEC Chairman Gary Gensler’s Views On Crypto
- Gary Gensler is expected to work on introducing bitcoin regulations
- The new SEC chief has cryptos high on his agenda
New Chairman for Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) has appointed a new Chairman. Gary Gensler, President Biden’s nominee, is now officially in charge of one of the main US regulators. There are only two securities markets regulators in the US . These are the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC). When it comes to bitcoin regulations in the US, both agencies need to decide rues for bitcoin trading and investing.
In April this year, the Senate confirmed Gary Gensler as the new Chairman of the SEC. Mr. Gensler is a former CFTC Chairman. He had been involved in overseeing the implementation of regulations around new market instruments and derivatives during the 2008 financial crisis. He also spent 18 years at Goldman Sachs.
As the next SEC chief, he is expected to be working heavily on shaping the regulatory landscape of the bitcoin and the cryptocurrency market. Mr. Gensler, during his nomination hearing in March, suggested that government oversight of cryptocurrencies is necessary.
What Are Gary Gensler’s Views On The Blockchain Industry?
As head of the SEC, Mr. Gensler has confirmed he will be working to “promote innovation in blockchain technology”. He will also be making sure that if cryptocurrencies are traded on exchanges as assets “there would be appropriate investor protection”.
According to Gary Gensler, bitcoin does not qualify as security but as a utility token. This acts as a form of tender, or a security token, which represents the equity in a company. It is little known that, in fact, Gary Gensler is a blockchain expert who has taught MIT courses and led conferences on the blockchain. In a 2018 blockchain conference, he mentioned that “Bitcoin came into existence as mining began as an incentive in validating a distributed platform.” This meant that it was without an initial token offering or a common enterprise. In other words, decentralized, and so impossible to be classified as a security. This is as per the general definition in the Securities Act of 1933.
The chief of the SEC has also led a 24-part course on Bitcoin and blockchain. In the series, Mr. Gensler provides a thorough analysis of the Bitcoin network. He also included complex blockchain technology issues, smart contracts, and decentralized apps (dapps).
The former SEC Chairman, Jay Clayton, has also called for crypto regulations. This comes as a result of growing demand in pressing the regulatory agencies to come up with a framework that will allow bitcoin to be traded and owned alongside traditional assets such as stocks, bonds, and commodities.
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