The U.S. Commodity Futures Trading Commission (CFTC)’s chairman from 2009 to 2014, Gary Gensler, has a new job, and interestingly enough, it is as a cryptocurrency educator. His current position is for MIT’s Digital Currency Initiative and one of his main tasks is to provide students with insight into blockchain technology and cryptocurrencies.
Gensler is best known for his efforts to provide cleanup after the 2008 global financial crisis. During his tenure, he implemented new regulations for unregulated swaps market and he was successful in providing oversight.
Before joining MIT, Gensler became Hillary Clinton’s finance chairman during her presidential run and bid. And now, he works for MIT. In an interview with The Wallstreet Journal, Gensler stated that he has a “bullish” policy when it comes to blockchain, explaining it as a system that mimics the disrupted nature of society. On the other hand, he has noted that that the technology is quickly growing in the financial industry.
Gensler has noted that there are some challenges, such as that government officials need to regulate larger cryptocurrencies and new CO tokens. In his own words, “The SEC and regulators need to bring clarity” because many cryptocurrencies “are operating outside of U.S. laws.” Gensler also stated that Ripple is a “noncompliant security” given its centralized distribution model.
At Gensler’s most recent talk, which was at the Congressional hearings concerning cryptocurrency and blockchain technology, he provided five reasons as to why he believes blockchain technology can transform the financial sector. Gensler also believes that the CFTC is well-equipped to regulate the cryptocurrency markets.