New SEC Chairman Expected to Impose Crypto Regulation

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  • Harvey Pitt, former SEC Chairman, says that a “fair amount” of crypto regulation will come from the U.S. Securities and Exchange Commission (SEC) in the upcoming days
  • New SEC Chairman, Gary Gensler, is an MIT crypto professor with a profound knowledge of cryptocurrency and blockchain technology
  • Gensler is a bitcoin and cryptocurrency supporter, however, as SEC chairman, he aims to “ensure investor protection”

Harvey Pitt, who served as the 26th chairman of the U.S. Securities and Exchange Commission (SEC) from 2001 to 2003, discussed the future of cryptocurrency regulation under the new SEC chairman, Gary Gensler.

I expect to see a fair amount of regulation of cryptocurrencies. Right now, I think the rules are unclear.

With Coinbase being listed on Nasdaq, the regulation of crypto exchanges and the whole cryptocurrency space is expected more than ever. There is a great likelihood that the SEC will step in and create some ground rules. The former SEC chairman said:

Whether or not certain offerings involve securities or not is unclear. There is a definite likelihood that the SEC will move forward. Gary Gensler is an expert on cryptocurrencies. He has taught about them. He is a market expert. I would expect to see clear rules of the road evolve under his leadership.

Gary Gensler’s Policies on Crypto Regulation

Gensler is a professor at MIT who teaches financial technology, public policy, blockchain technology, and digital currencies. He had previously revealed his policies regarding bitcoin and crypto regulation during his confirmation hearing before the Senate Banking Committee.

At the confirmation hearing, he marked bitcoin and cryptocurrencies as innovations that work like “a catalyst for change.” He said that, “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.”

Gensler emphasized that he will work with fellow commissioners to promote these innovations, but principally, he will work to “ensure investor protection.” He stated:

To the extent that somebody is offering an investment contract or security that’s under the SEC’s remit, and they have exchanges that operate there, then we have to make sure there’s investor protection.

Additionally, the professor revealed that he plans to make sure cryptocurrency markets “are free of fraud and manipulation,” something currently very prevalent in the crypto space.

Many including the SEC Commissioner Hester Peirce are optimistic about the new SEC chairman and believe he can build a good regulatory framework for cryptocurrencies.