The U.S. Securities and Exchange Commission (SEC) now has a new chairman, Gary Gensler… Gensler is well versed in blockchain and cryptocurrency as a lecturer. Gary Gensler, professor of the Practice, Global Economics, and Management at Massachusetts Institute of Technology (MIT), was confirmed as chairman of the Securities and Exchange Commission (SEC) on Wednesday the 14th. In an interview with CNBC’s Squawk Box, the new Chair, who was sworn in just last month, discusses what he believes the SEC’s role will be in regulating the crypto markets. He's a former Goldman Sachs executive who … President Joe Biden’s pick, the MIT professor, whose classes included blockchain technology, digital currencies, and financial technology, has been confirmed by the Senate to lead the SEC. High-performing institutions cultivate and grow talent, carefully balancing costs and rewards. Baradaran has written extensively about inequalities in banking and is a critic of the idea that projects like Facebook’s libra could by default help expand financial inclusion. Although guidance on the classification of the asset, compliance procedures around KYC and AML policies, and custodian disclosures is an important first step for general adoption in the space, this is surely only the beginning of thoughtful regulatory policy and oversight in the crypto space. Former CFTC Gary Gensler is tipped to become the next SEC chief. That means that asset managers and companies who have been investing in digital assets directly are involved in initial coin offerings (ICOs), or are digital asset custodians have been having a difficult time finding a home for their insurance policies. New SEC Chair Gary Gensler recommended that Congress look into crypto exchange rules, noting there are no regulators for exchanges at present. More recently, he has also testified before Congress about cryptocurrency and blockchain on multiple occasions, pushing back against comparisons between cryptocurrencies and Ponzi schemes and declaring that the still-unlaunched libra token met the requirements of being a security under U.S. law. Gary Gensler’s statements to the U.S. Congress on March 2, 2021, were beautiful to the ears of crypto enthusiasts. Some additional topics that will likely be top of mind for regulators will include ICOs, regulation of exchanges, sanctions regime, and Central Bank Digital Currencies (CBDCs).8,9, 1 https://www.investopedia.com/terms/h/hodl.asp Gary Gensler is a Research Affiliate at the MIT Sloan School of Management. Alex Wong/Getty Images. Cyber Risk Management|Financial, Executive and Professional Risks (FINEX), Associate Broker, Middle Market Financial Institutions, Financial, Executive and Professional Risks (FINEX). Gensler called blockchain technology a “change catalyst” in a 2019 op-ed for CoinDesk. At an MIT conference two years ago, he opined there was a “strong case” XRP, the cryptocurrency closely associated with startup Ripple, is a security. He has a full plate, one of which is the SEC lawsuit for securities violation against Ripple and it could determine the future of XRP and other cryptocurrencies in general. He served as a senior adviser to the Deputy Secretary of the Treasury in 2015-16 and has also worked as an economist at the Federal Reserve Bank of New York’s bank supervision group. 8 https://www.media.mit.edu/groups/digital-currency-initiative-dci/overview/#:~:text=The%20Digital%20Currency%20Initiative%20strives,its%20underlying%20distributed%20ledger%20technology Over the past year, cryptocurrencies and blockchain technology have quickly become one of the hottest topics amongst retail investors and crypto fanatics who have been HODLing1 their crypto assets through tremendous volatility. The demand for reasonably priced management liability policies has existed in the digital asset space for some time, the question is what it will take for insurance carriers to get comfortable underwriting the risk profile. Bitcoin fell as much as 4% on Tuesday after SEC Chairman nominee Gary Gensler testified that he would seek to eliminate fraud and manipulation from crypto … We know how companies can unlock potential through effective risk management. The letter described the importance of custodians having clear documentation of their client base, including the identification and source of any funds being held in custody. By He is also the chairman of the US Securities and Exchange Commission in the Biden administration. Although more regulation is likely ahead, Gensler may be a key figure in making sure that it plays a positive role in cryptocurrency’s development, rather than simply attacking the emerging crypto market. As more institutional players continue to invest in this space, many are looking to regulators for clarity on how policy will look for custodians of crypto assets. Miguel Cano 4 https://www.coindesk.com/gary-gensler-sec-crypto 2. The lawsuit alleges that Ripple Labs has been violating securities laws for over seven years by selling XRP in unregistered securities transactions.4 If approved as chairman, Gensler would inherit what has become the highest profile crypto case for the agency. What Crypto Can Expect From Gary Gensler at the SEC. 5 https://ocw.mit.edu/courses/sloan-school-of-management/15-s12-blockchain-and-money-fall-2018/index.htm Maybe Having A Crypto Expert At SEC’s Helm Isn’t So Great For Crypto Company Being Sued By SEC. Still, a small part raised red flags and contributed to the markets closing the day with a red candle just when bitcoin seemed to be recovering from a monstrous crash. State of Crypto: How SEC Chair Gary Gensler Could Differ From Predecessor Jay Clayton. As CFTC chairman, Gensler served as a key financial regulator for former President Barack Obama, spearheading new derivatives rules after the 2008 financial crisis. If it weren't for pressure from colleagues, Gensler might not even prioritize regulation reform for bitcoin securities. Gensler did not return a request for comment. Copyright © 2021 Willis Towers Watson. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. Gary Gensler was confirmed by the Senate in a 53-54 vote as the new chair of the U.S Securities and Exchange Commission (SEC) earlier this week. Valero Secures Biden’s First Jones Act Waiver for Foreign Tanker. Related: Cryptocurrency CEO Donated Second-Largest Amount to Joe Biden's Campaign. Related: Crypto Impact Unclear After Joe Biden Unseats Donald Trump as Next US President. Chris Brummer, a law professor and the faculty director of Georgetown University’s Institute of International Economic Law, is a familiar figure in the fintech sector who also testified before the U.S. Congress regarding Facebook’s libra project. Biden Confirms Crypto-Savvy Gary Gensler Will Lead Financial Policy Transition Team, Crypto Impact Unclear After Joe Biden Unseats Donald Trump as Next US President, comparisons between cryptocurrencies and Ponzi schemes, Cryptocurrency CEO Donated Second-Largest Amount to Joe Biden's Campaign. Appearing before the House Financial Services Committee on Thursday, newly anointed SEC Chairman Gary Gensler suggested that Congress should consider regulating cryptocurrency exchanges. Gary Gensler, Simon Johnson and Mehrsa Baradaran are among the policy experts versed in crypto and blockchain issues named to Biden’s transition team. Clients depend on us for specialized industry expertise. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. While he is a proponent of financial innovation, he will seek to re-shape regulation before letting the crypto horse run wild. Gary Gensler is the new SEC chair after confirmation by the U.S Senate in a 53-45 vote yesterday. While Democrats, especially the progressive wing of the party, want to see Gensler tackle a range of issues related to inequality and climate change, the lion’s share of media attention has been focused on commentary and speculation regarding the SEC’s role in digital currencies and blockchain technology. The Senate confirmed Gary Gensler, President Biden’s pick, as Chairman of the Securities and Exchange Commission on Wednesday. As we move forward into 2021, investors, underwriters, and crypto companies will be looking to the new regime of regulators to provide clarity on what the future of digital asset policy will be. Lev Menand, one of the original creators of the digital dollar concept, is an academic fellow and law professor at Columbia University. All rights reserved. A recent Goldman Sachs crypto asset survey, which received nearly 300 responses from institutional clients of the bank, showed that 40% of participants currently have exposure to crypto assets, and 61% of participants expect their crypto asset holdings to increase over the next year.2 These results support the underlying trend that crypto assets are beginning to become a mainstream asset class. He has extensive experience that spans Wall Street, government regulation, and a stint teaching about cryptocurrencies … Regulators from two countries and Tesla CEO Elon Musk are warning cryptocurrency investors to be careful. Instructor(s) Prof. Gary Gensler MIT Course Number 15.S12 As Taught In Fall 2018 Level Graduate. He was part of the Congressional Budget Office’s Panel of Economic Advisers from April 2009 to April 2015. He is a member of the New York Fed Fintech Advisory Council, a committee of specialists from the area of financial technology that gives advice to the President of the New York Fed on matters of the field.. Gensler has expertise with cryptography and is well-known for it. "It'd be good to consider whether to bring investor protection to the crypto exchanges," Gensler told Rep. Patrick McHenry. Observers in the space are seeking clues on this front by closely examining the ongoing SEC lawsuit against Ripple Labs, the Silicon Valley startup which has been associated with the cryptocurrency XRP. Gary Gensler was confirmed as the new SEC chair by the U.S Senate on April 14, 2021. In July of 2020 the Office of the Comptroller of the Currency (OCC) released a letter outlining some general guidelines for custodians of digital assets. The Big Story Crypto chief. MIT Crypto Professor Gary Gensler Confirmed as New SEC Chairman The U.S. Securities and Exchange Commission (SEC) now has a new chairman, Gary Gensler. He has immersed himself in the space on several levels, particularly technology, politics, economics, and elsewhere. As regulators begin to provide more clarity on what they expect from companies involved in the digital asset space, it’s likely that we will see some carriers become more receptive when looking at companies with blockchain exposures. With the Senate's confirmation of Biden administration’s nomination of Gary Gensler for the role of Chairman of the U.S. Securities and Exchange Commission (SEC), many crypto enthusiasts and skeptics are asking themselves what the implications may be for the blockchain and crypto asset industry. To be sure, incumbent President Donald Trump has contested the election results and has filed lawsuits in a handful of states seeking to have votes discounted due to alleged irregularities, though with little evidence so far. Gary Gensler, professor of the Practice, Global Economics, and Management at Massachusetts Institute of Technology (MIT), was confirmed as chairman of the Securities and Exchange Commission (SEC) on Wednesday the 14th. By Michelle Lim; April 15, 2021 (Updated: April 18, 2021) 6 minute read Mehrsa Baradaran, a University of California at Irvine School of Law professor, specializes in banking law and also testified as an expert witness at a Senate Banking Committee hearing on regulatory frameworks for blockchain and cryptocurrencies. He conducts research and teaches on blockchain technology, digital currencies, financial technology, and public policy. Gary Gensler, the new chairman of the Securities and Exchange Commission, says greater investor protection is needed for cryptocurrencies like Bitcoin, and he … The letter also covered topics such as safe management of cryptographic keys, storage of assets (cold vs hot storage), and the creation of processes for delisting assets (in the case they cease to operate or no longer meet minimum requirements to be held in custody).7 Although the letter from the OCC is merely a guidepost, it gives us a glimpse into how some regulators are thinking about the custody of crypto assets and therefore provides some clues on the types of disclosures we can expect to have from digital asset custodians.