The President-Elect for the United States, Joe Biden has recently announced that his transition team would also include Gary Gensler, who is the former chair of the Commodity Futures Trading Commission, otherwise known as the CFTC. This means that the move could prove to be beneficial for the digital currency and blockchain space. Gensler will become part of the transition team as a financial expert, as he has already been given the greenlight about the oversight of transition with banking and financial regulators. Apart from this, the Federal Reserve’s transition oversight would also be his responsibility.
However, it should also be noted that Gensler will not be throwing around his weight in a professional capacity, rather a personal one, because he is only a ‘volunteer’ and not an employee. However, the consequence of this move means that his funding source has also been listed the same in the lineup of the transition team. It appears to be ages ago, but Gensler had been appointed in the Obama era for oversight over the CFTC. During his time at the agency, the man had been known for being a stringent regulator, which had begun in 2009 and stretched till 2014.
At that time, Gensler had been a driving force about the huge reforms that were made within the financial derivatives market, which has a market capitalization of about $400 trillion. Previously, Gensler had made it clear that he believes a robust regulatory structure is required for the digital currency space in order for it to reach its full potential. As far as his reasons are concerned, he stated that this would protect the investors in the event that they end up losing their private keys, which is considered a catastrophe for any wallet owner, and also protect the people against any market manipulation.
Gensler is also one of the numerous voices that are in favor of ICOs (Initial Coin Offerings) being regulated the same way as securities. This would make them very similar to IPOs and a number of other security issuances, meaning that they would be subject to the same rules. In addition, it would also mean that ICOs would then come under the jurisdiction of the Securities and Exchange Commission, otherwise known as the SEC. As of now, the former chair of the CFTC is also working with MIT Media Labs’ Digital Currency initiative.
His position at the Digital Currency Initiative is that of a senior advisor and he will continue the position, along with being a member of the transition team. As far as the initiative is concerned, it is a project that’s dedicated to the research and development of blockchain technology and digital currencies. This new appointment by the president-elect will certainly help the digital currency space in the United States to breathe a little easier. It is an indication that the new administration may have a more open approach when it comes to regulating the crypto and blockchain space, which would provide a great deal of certainty to users in the country.