US: Former CFTC Chair and Crypto Savvy MIT Professor to Review Functions of Federal Agencies
The former chairman of the Commodity Futures Trading Commission (CFTC), Gary Gensler, will lead the Financial Policy Transition Team should Joe Biden win the hotly contested presidential election, Politico reports on Nov 11.
Gary Gensler To Review Function of Federal Agencies
He was one of the 500 people named by the Joe-Kamala transition team to review the functions of the federal agencies including the United States Securities Exchange Commission (SEC), Federal Reserve, and the CFTC, ensuring a smooth transition. The 63-year old experienced Massachusetts Institute of Technology (MIT) professor has served in the Clinton and Obama administrations in several capacities.
Most importantly, for the emerging and potent sphere, is that Gary is tech and crypto aware. After leading the regulatory agency for five years, he has on several occasions expressed his support for blockchain-based applications calling distributed ledger technology a “change catalyst.”
For instance, when he testified in Congress, he rejected misleading comparisons between cryptocurrencies and Ponzi Schemes, further claiming that Libra tokens—a project fronted by Facebook but opposed by leaders in Europe and the United States, met all the requirements to be categorized as a security.
In his assessment, and cross-check with existing laws, Gary argued that there was a strong case that the Ripple Labs-issued XRP is a security.
Whether the coin is a security or a utility—in the same breath as Bitcoin and Ethereum, is also a subject of debate. Ripple executives assert that XRP is a utility and isn’t subject to comply with SEC rules.
Role in the CFTC Post-GFC Crisis
Gary is well known for his hard-line stance and was heavily involved in formulating policy and cracking down on Wall Street banks as the effects of the Great Financial Crisis (GFC) of 2008-09 reverberated across the globe.
The former Goldman Sachs partner, as the head of the CFTC, imposed sweeping rules on derivatives trading that still stands to this day. Before 2008, derivatives, especially swaps, were largely unregulated.
America remains in a state of flux as the incumbent, President Trump, has filed several suits in several contentious states claiming electoral fraud. However, Joe Biden leads and is projected to be the President-Elect.
As BTCManager reported, Bitcoin Holding companies will likely come under scrutiny under the Biden Administration according to Ripple CEO, Brad Garlinghouse.