Gary Gensler, President Joe Biden's nominee to spearhead the Securities and Exchange Commission, has told the Senate Banking Committee that he would promote cryptocurrency innovation during his March 2 confirmation hearing when asked cryptocurrency regulations. He described Bitcoin and other cryptocurrencies as "a catalyst for change."
I think, as I teach at MIT on these subjects, that these innovations have been a catalyst for change. Bitcoin and cryptocurrencies have brought new thinking to payments and financial inclusion but they've also raised new issues of investor protection...If confirmed at the SEC, I will work to promote innovation.
At the same time, he stresses that it was important to update the SEC's market oversight to new technologies:
It’s always important to update our market oversight to new technologies...It’s important to stay true to our principles of investor protection.
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Gensler also mentioned the importance of providing regulatory clarity even if it's "thumbs-down" when asked about non-action letters by Wyoming's Cynthia Lummis.
I do think that technology and markets constantly change and evolve. Even if it’s thumbs-down, it’s important to provide it [clarity].
Unsurprisingly, the nominee displayed a deep knowledge of the blockchain technology:
I think it’s already doing some of this right. Central banks are really looking at how to provide more inclusive payment tokens. Blockchain technology is a shared accounting system, and that led to some thoughts about how to do trade finance. I am neither maximalism nor a maximalist, but I really think it’s gonna be a catalyst for change.
Crypto-friendly Gensler is widely expected to finally approve a Bitcoin exchange-traded fund while also presiding over the SEC's lawsuit against Ripple.
This is a developing story. Stay tuned for updates.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team
