Cryptocurrency enthusiasts have been keeping an eye on the U.S. SEC nominee, Gary Gensler, on how the Biden picked candidate might regulate the digital asset market. In his confirmation hearing on March 2, Gensler suggested that regulation will be the first step in the cryptocurrency market if he gets confirmed to lead the SEC. Bitcoin’s value dipped in a jiffy following Gensler’s comments during the confirmation hearing.
Gensler Seeks to Enforce Investor Protection in Cryptocurrency Markets
In his Senate confirmation hearing, Gensler said that the SEC would seek to enforce investor protections in the crypto market. This includes the elimination of fraud and manipulation from cryptocurrency markets. He said:
“The SEC must ensure that crypto markets are free of fraud and manipulation, and I think that’s the greater challenge, frankly, because some markets, usually operating overseas, have been rife with fraud.”
He did highlight that Bitcoin and digital currencies have bought new ways towards financial inclusion, but they have also bought new issues towards investor protection:
“Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection that we still need to attend to.”
He went to say that if confirmed, he would both promote the new innovation, but also, at the core, ensure investor protection.
Following his remarks on investor protection, Bitcoin fell as much as 4% after the SEC Chairman nominee Gary Gensler testified on eliminating fraud and manipulation from the crypto markets.
Bitcoin traded just below $50,000 the morning of March 2, before falling towards $47,000 by post noon. The cryptocurrency is currently trading at 48,830 at the time of writing.
Gensler Viewed as a Cryptocurrency Advocate
Gensler has spent nearly 20 years at Goldman Sachs and was the former chairman of the Commodity Futures Trading Commission during the Obama administration. He is also a professor at MIT’s Sloan School of Management, where he teaches on blockchain technology and digital currencies.
Gensler has been viewed as a cryptocurrency advocate given his past work and teachings on the subject at MIT.
If elected as the head of the SEC, Gensler would be in charge of cryptocurrencies deemed to be securities. During the Senate Banking Committee hearing, Gensler assured that Bitcoin doesn’t qualify as a security.
Unlike other cryptocurrencies being offered by companies such as Ripple, bitcoin had no initial token offering and no common enterprise. Ripple, on the other hand, does have a common enterprise, he added.