Former CFTC (Commodities and Futures Exchange Comission) Chairman, Gary Gensler, served under the Obama administration and was known for his close examination of the derivatives markets mandated by 2010 Dodd-Frank act. While serving between 2009 and 2014, he developed a reputation for being a “bare-knuckle” fighter against corrupt activities. It’s been confirmed that Gensler will lead the financial transition team under the next project-President’s administration Biden.
A Crypto Academic
More interesting than the reforms he introduced on Wall Street is his deep knowledge and understanding of cryptocurrencies. In the last few years, Gesler was a lecturer at MIT (Massachusetts Institute of Technology). He has covered the topic of cryptocurrencies and shows deep understanding of the underlying mechanisms.
Additionally, he has expressed his thoughts on the ICO craze and stated that more than 1,000ICOs were fraudulent. He’s even said back in 2018 that cryptocurrencies such as ETH and XRP might be securities.
Regulating the Novel Asset Class
One of the main hurdles regulators face happens when they try to apply old regulatory frameworks from other asset classes onto cryptocurrencies, these can become a threat to innovation. Having a regulator who is well versed with the novel asset class can be very beneficial to improve investor protection without limiting the innovation.