Gary Gensler, President Biden’s election as chairman of the US Securities and Exchange Commission, appeared before the Senate Banking Committee yesterday
Gary Gensler appeared for the hearing yesterday along with Rohit Chopra, who has been selected to head the Consumer Financial Protection Bureau. Questions about cryptocurrencies surfaced during his hearing, and the former chairman of the Commodity Futures Trading Commission during the Obama administration made his stance on crypto assets clear.
In the past, SEC chairmen had conflicting opinions about cryptocurrencies – those against the assets and those who believed cryptocurrencies were going somewhere. Gary Gensler appears to fall into the latter category based on his comments during the confirmation hearing.
In his opening speech at the nomination hearing, he noted that both markets and existing technology were evolving, which is a crucial aspect that cannot be taken lightly.
“As technology and markets change and evolve, it is important for the SEC to provide guidance and clarity. Investor protection – to ensure the market is fraud and manipulation free – is frankly the bigger challenge. “
Under his guidance, Gensler promised to assess the sector to see if strict regulations are required.
“Our rules have to change with them. I believe financial technology can be a powerful force for good, but only if we continue to use the SEC’s core values to serve investors, issuers, and the public. “
He also stressed the need to ensure that investor protection is not overlooked, claiming: “It is always important to update our market surveillance with new technology. It is important to remain true to our principles of investor protection.”
Gensler stated that crypto drove a change in the financial industry. While answering South Dakota Senator Mike Rounds, Biden’s candidate said: “Bitcoin and other cryptocurrencies have brought new considerations to payments and financial inclusion, but they have also raised new investor protection issues that we have yet to consider.”
Gensler’s comments on cryptos convey an attitude that contrasts sharply with recent comments by Treasury Secretary Janet Yellen. The remarks also stand in stark contrast to Massachusetts Senator Elizabeth Warren, who believes Bitcoin will have a bad ending.
Gensler also stated that if approved, he intends to encourage advances in the crypto sector. This was not the first time Gensler appeared before policy makers. In the past, he has been to Congress several times with a positive outlook on crypto. Many crypto users will no doubt hope he will be confirmed as the 33rd SEC chairman.