Gary Gensler has assumed a variety of positions under three presidential administrations before becoming the most recent chair for the United States Securities and Exchange Commission, where he has served since April 2021.
Gensler grew up in Maryland in the 1960s and 1970s. He later graduated with an economics degree from the University of Pennsylvania’s Wharton School and earned a Master’s degree in Business Administration before moving to Goldman Sachs, where he worked for 18 years.
His first foray into public service began under the Bill Clinton administration, serving as the Assistant Secretary of the Treasury for Financial Markets and the Under Secretary of the Treasury for Domestic Finance from 1997 to 2001. He later worked as the Commodity Futures Trading Commission chair under President Barack Obama from 2009 to 2014.
Gensler is arguably one of the most informed SEC chairs on crypto and blockchain technology, having taught courses on the subject at the Massachusetts Institute of Technology and witnessing the rise in regulation of the crypto space from within the U.S. government since the introduction of Bitcoin in 2009. While he has advocated for greater enforcement of crypto firms, his policy positions are seemingly shaped by informed views.
The U.S. Senate confirmed Gensler’s nomination to serve as the SEC chair in April following President Joe Biden announcing the former CFTC chair as his pick. Gensler succeeded SEC acting chair Allison Lee.
During his time as SEC chair, Gensler has advocated an “open door” approach to crypto firms looking to legally operate in the United States, making multiple public statements encouraging companies to “come in and talk” to the regulatory body should they have any questions or concerns. However, he has also said the agency would continue its practice of leveling enforcement actions on crypto and blockchain firms. As of December 2020, the SEC had brought 75 enforcement cases against companies, totaling $1.7 billion in penalties and mostly involving allegations of fraud or unregistered securities offerings.
Until 2021, the SEC had yet to approve exchange-traded funds with exposure to cryptocurrencies in the U.S. However, in August, Gensler hinted that the agency would be more open to approving funds based on CME-traded Bitcoin futures rather than spot BTC ETFs; ProShares and Valkyrie subsequently launched their offerings in October.
Gensler will likely continue to serve as chair of the SEC until 2026, barring his resignation. He has stated he hopes to introduce crypto-related policy changes in the future that surround token offerings, decentralized finance, stablecoins, custody, exchange-traded funds and lending platforms. Some lawmakers as well as his fellow SEC commissioners have criticized Gensler for not providing sufficient regulatory guidance on crypto, potentially leading to a showdown between Congress and the agency.
The SEC, CFTC, and Financial Crimes Enforcement Network handle digital asset regulation in the U.S., but each with different jurisdictional claims, resulting in a patchwork approach that crypto firms must navigate to legally operate. Whether 2022 will see a clearer path for companies in the crypto space is uncertain, but the makeup of the SEC’s leadership will significantly change following the departure of commissioner Elad Roisman in January. Commissioner Allison Lee’s term is also set to expire in June 2022.
Law & Politics
Wharton School of the University of Pennsylvania
Professor at MIT
