It appears that the Chairman of the Securities and Exchange Commission, Gary Gensler, has a personal vendetta against the cryptocurrency industry. From the accumulation of digital assets to the Ripple (XRP) lawsuit, Gensler is dropping the regulatory hammer on crypto companies.
Most blockchain enthusiasts regard SEC Chairman Gary Gensler as the evil enforcer of securities laws. However, it is also possible that greater clarity in the regulation of crypto assets could benefit digital currency adoption in the long run.
Is Gary Gensler really on the mission of strangling Ethereum (ETH), or is he laying the groundwork for cryptocurrency and blockchain-based financial services to go mainstream?
Who is Gary Gensler?
Gary Gensler is the acting chairman of the US Securities and Exchange Commission under Joe Biden’s administration. He is most famous in the world of cryptocurrency for leading the lawsuit that the Securities and Exchange Commission brought against him rippleand crack down on cryptocurrency exchanges staking servicesand try to categorize everything as collateral.
All in the noble name of consumer protection, of course.
Gensler was born and raised in Baltimore, Maryland. The future chairman of the Securities and Exchange Commission was exposed to finance from an early age by his father, Sam Gensler. Sam Gensler ran cigarette and pinball machines with local pubs and often brought Gary in to help count nickels from his machines.
After graduating from high school, Gary Gensler attended the Wharton School of Business at the University of Pennsylvania and completed his Bachelor’s degree in Economics. This was not enough for an ambitious young man, Gensler, he continued his studies and finally graduated from the Wharton School with a master’s degree in business administration.
MBA in hand, Gensler kicked off his financial career with enthusiasm.
In 1979, Gensler got his start at Goldman Sachs, one of the most reputable investment banking firms in the world. Throughout the 1980s, Gensler worked in the mergers and acquisitions sector at Goldman Sachs, primarily advising media companies. This included leading a team that helped the National Football League land the most lucrative television deal at the time, worth about $3.6 billion.
By the age of 30, Gensler was one of the youngest bankers ever to join Goldman Sachs. He went on to become the company’s co-chief financial officer.
Gensler in public service
After 18 years of service at Goldman Sachs, President Bill Clinton nominated Gensler for the post of Assistant Secretary of the US Treasury. He was immediately confirmed by the US Senate and began a career in government and public service.
After two years, Gensler switched departments and took the position of Undersecretary for Local Finance. This position placed the weight of responsibilities on Gensler’s shoulders. He was responsible for drafting policies and legislation in key areas such as capital markets, public debt management, and financial affairs.
In recognition of his achievements and services in these roles, Gensler was awarded the Alexander Hamilton Award, the United States Treasury Department’s highest honor. In 2001, Gensler became a senior advisor to US Senator Paul Sarbanes and has been credited with playing an important role in signing the Sarbanes-Oxley Act.
During the Obama administration, Gensler was sworn in as chairman of the Commodity Futures Trading Commission (CFTC). He went on to earn the respect and admiration of his peers, who viewed him as one of the greatest reformers in the aftermath of the global financial crisis.
US Securities and Exchange Commission
In the wake of the Trump Republican administration, Gensler was nominated to his current position as chairman of the Securities and Exchange Commission by President Joe Biden. Headquartered in New York, Gensler is leading the regulatory charge against cryptocurrency.
According to MIT’s Sloan School of Management, Gensler is an expert in cryptocurrency. Since 2018, Gensler has been teaching courses on blockchain technology and cryptocurrency use cases to a new generation of learners.
Gary Gensler vs. the Cryptocurrency Market
Since taking over as chairman of the US Securities and Exchange Commission, Gensler has unleashed a full-blown war on cryptocurrency regulation. Most notably, he is leading the SEC’s lawsuit against Ripple, which has been dragging on for years and may shape the future of cryptocurrency regulation in the United States.
He has also handed out millions of dollars in fines to cryptocurrency exchanges like Kraken for their backlog of offerings. This sent waves of fear, uncertainty, and doubt across the cryptocurrency industry. And relentlessly, other major exchanges like Coinbase and its founder Brian Armstrong have crossed over Fears Campaigns against Gensler.
According to Gary Gensler, every cryptocurrency other than Bitcoin (BTC) is a security. Using the Howey test as a measuring stick, Gensler claims that every cryptocurrency has a team of entrepreneurs running a company, and investors expecting to benefit from the efforts of others.
It could be said that this also extends to NFTs, although this is still a gray area. NFTs can easily be considered simple collectibles, as opposed to investment vehicles.
Does Gensler’s opinion really matter?
It is important to remember that although Gary Gensler’s position as SEC chief greatly influences how digital currencies are regulated in the United States, Gensler himself is not the voice of the law. He does not write the laws related to regulating cryptocurrencies. He doesn’t even judge how to apply them.
In the United States, these crucial decisions are ultimately handled by federal courts and judges.
Gary Gensler and Sam Bankman-Fried
That Gensler can not be overlooked Sam Bankman Fried We worked closely together while SBF was still the golden child of cryptocurrency. Gary Gensler and the SBF held private meetings ahead of the final collapse of the FTX crypto exchange.
SBF is expected to be in contact with Gensler to build a file organizational moat Conspiracy theories tying Sam Bankman-Fried’s political donations to public servants around FTX and a monopoly on cryptocurrency trading are common, yet nothing is confirmed.
Many cryptocurrency investors are also quick to point out that Gensler is more interested in going after Ripple executives like Brad Garlinghouse From bringing alleged criminals like SBF to justice.
on the flip side
- Despite his reputation and perception within the broader crypto industry, Gary Gensler has enjoyed a prestigious and successful career in finance and government.
- may be on a mission to impose stricter regulations on cryptocurrency; However, if you live outside the US, you shouldn’t experience any direct effects from his behavior.
Why should you bother
As Chairman of the Securities and Exchange Commission, Gensler is very involved in how cryptocurrencies are regulated in the United States
questions and answers
What is Gary Gensler’s net worth?
According to Bloomberg, the estimated net worth of Gary Gensler is up to $119 million.
Who was the SEC chief before Gensler?
Prior to Gary Gensler’s nomination for this role, Jay Clayton served as President of the SEC.
Who controls the Securities and Exchange Commission?
Five individuals chair the US Securities and Exchange Commission. Each member is nominated by the President and approved by the United States Senate. The chairperson then appoints one of the committee members as chairperson.