Former U.S. Securities and Exchange Commission Chair Gary Gensler is set to rejoin MIT’s Sloan School of Management as a Professor of the Practice. As announced by the MIT press release on January 27, Gensler will be a member of both the Global Economics and Management Group and the Finance Group, focusing on artificial intelligence, finance, financial technology, and public policy.

Gensler’s Academic and Professional Background

Prior to his SEC Chair role during the Biden administration, Gensler served as a Professor of the Practice at MIT Sloan from 2018 to 2021. He also held the position of Chairman of the Commodity Futures Trading Commission under President Obama, overseeing the implementation of post-2008 reforms in the $400 trillion swaps market.

Gensler’s Stance on Cryptocurrencies

Within the crypto industry, Gensler has been known for his strict “Everything is a Security” stance. He has had a contentious relationship with Congress and other U.S. regulators, criticizing bills that would codify a clearer crypto regulatory framework. Gensler has repeatedly stated that most cryptos, excluding Bitcoin, should qualify as securities, thereby falling under SEC jurisdiction.

Gensler’s strict regulations have left projects working in the U.S. in legal limbo. In January 2022, he emphasized,

“The fact is, most crypto tokens involve a group of entrepreneurs raising money from the public in anticipation of profits—the hallmark of an investment contract or a security under our jurisdiction.”

Impact on the Crypto Industry

Gensler’s resistance to the approval of spot Bitcoin ETFs has also been a point of contention. He cited the need for investor protection and concerns about market manipulation. However, a three-judge panel from the U.S. Court of Appeals for the D.C. Circuit ruled against the SEC in August 2023, stating that the agency’s refusal to allow Grayscale to convert its Bitcoin Trust into an ETF was “arbitrary and capricious.”

Reaction from the Crypto Community

MIT graduate Devin Walsh expressed his frustration over Gensler’s return, calling it a “waste of time, tuition funds, and energy.” Walsh, who became interested in cryptocurrencies through MIT’s Digital Currency Initiative, slammed the move as a disappointment for students wanting to support innovation.

Walsh tweeted,

“As an @MITSloan graduate, incredibly embarrassed and disappointed to see them rehire Gensler… MIT was where I first learned about and fell in love with crypto through independent work with the @mitDCI… a waste of time, tuition funds, and energy for any student hoping to study and support innovation.”

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