US President-elect Joe Biden will reportedly elect Gary Gensler, professor of blockchain technology at the Massachusetts Institute of Technology (MIT), as head of the Securities and Exchange Commission (SEC).
Gary Gensler will head the SEC
Gensler is currently working as an advisor on Biden’s team. He was responsible for issues related to the central bank, SEC and CFTC. Previously, he served as chairman of the CFTC in the administration of President Barack Obama. Thus, his term of office fell during the previous financial crisis.
As head of the SEC, the federal regulator of the securities industry, Gensler will have a big impact on the US markets, but also the development of blockchain technology and cryptocurrencies.
For years he has been researching and teaching blockchain technology to students. He also worked at Goldman Sachs in 1979-1997.
Attitude towards blockchain
– There are many potential uses [blockchaina] in finance – for example, using blockchain to control and handle loans or support smart contracts. But at least for now, the lion’s share of attention will be devoted to cryptocurrencies and stablecoins – said Gensler in 2019.
In a similar period, he said regulators are trying “Catch up” blockchain to regulate it wisely.
– Perhaps we need to stay ahead of this great technology – added.
As head of the SEC, he will work with people who are apparently in favor of quantitative easing. This is important in terms of the economic plane of Bitcoin’s operation. Note that cryptocurrency proponents view the Biden stimulus plan, which could cost up to $ 3 trillion, as a potential boost to the cryptocurrency market, but also a threat to the dollar.
Currently, digital currencies are regulated at the federal level by the CFTC and the Office of Currency Controls (OCC). Stock exchanges may be subject to the Banking Secrecy Act. Cryptocurrency holders also have to pay federal capital gains tax due to the Internal Revenue Service (IRS) tax policy.
Today it is not clear what Biden himself has on BTC.
– I don’t have Bitcoin and I will never ask you to send me any – he said only on July 15, after the hacker hacked his Twitter account and, impersonating himself, asked internet users to send him cryptocurrencies.