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Gary Gensler: From CFTC Chair to Blockchain and Cryptocurrency Educator

Gary Gensler was chairman of the U.S Commodity Futures Trading Commission (CFTC) between 2009 and 2014, right after the global financial crisis. Today, Gensler is part of MIT’s Digital Currency Initiative, lecturing students on blockchain technology and cryptocurrencies.


Gensler was instrumental in dealing with some of the cleanup from the global financial crisis of 2008. He implemented new regulation whilst at the U.S CFTC for the unregulated swaps market which played a central role in the crisis. His work at the U.S CFTC was successful and the new oversights were implemented in advance of other regulators taking actions to mop up after the crisis.

Teaching Blockchain and Cryptocurrency at MIT

After leaving the CFTC Gensler became finance chairman for Hillary Clinton’s 2016 presidential campaign and bid. Gensler has now joined the Massachusetts Institute of Technology (MIT) Sloan School of Management and lectures on blockchain technology and cryptocurrencies.

Bullish on Blockchain

In a recent interview with The Wall Street Journal, Gensler confirmed he is “bullish” when it comes to blockchain, describing it as mimicking the distributed nature of society. However, his past work at the CFTC has left him with a “sober” eye on fast-growing financial technology.

Despite not being directly involved in U.S politics right now he has agreed to help both Republicans and Democrats in matters of cryptocurrency regulation.

Regulators Need to Bring Clarity

Regulators Need to Bring Clarity

Speaking at the MIT Technology Review’s Business of Blockchain conference in April 2018, Gensler said that government officials needed to look to regulate the larger cryptocurrencies as well as new ICO tokens.

“The SEC and regulators need to bring clarity,” said Gensler, many cryptocurrencies “are operating outside of U.S. laws.”

Gensler was quoted in a subsequent debate over Ripple describing it as a “noncompliant security” due to its centralized distribution model.

The CFTC is Better Placed to Regulate the Sector

Last week, July 19, 2018, Gensler spoke at U.S Congressional hearings on cryptocurrencies and blockchain technologies giving five reasons why he believes blockchain technology can make a real difference in the financial sector.

Gensler said blockchain lowers costs and risks and can give stability and prevent illicit activities if regulated. But, the U.S Securities and Exchange Commission (SEC) and U.S CFTC have a role to play as the ICO market is ripe with scams and fraud and there are gaps in U.S law, especially when it comes to exchanges.

Gensler also believes the U.S CFTC is better placed to regulate cryptocurrency markets.

Do you agree with Gensler? Who is better placed to regulate cryptocurrencies in the U.S, the CFTC or the SEC? Let us know what you think in the comments below.


Images courtesy of Shutterstock, Flickr

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Říj 19

Poloniex Seeks Regulatory Clarity From CFTC Following Allegations

Source: bitcoin

CFTC

Popular Bitcoin and altcoin exchange Poloniex has submitted a request for no action relief to the Commodities and Futures Trading Commission (CFTC) around potential allegations that required timing of the “actual delivery” of cryptocurrency, regulated by a 28 day period in the Commodity Exchange Act (CEA), has been violated.

Also read: ‘GAME Changer’ Announced at Coinsbank Blockchain Summit in Turkey

The digital nature of cryptocurrency, however, does not mend well to the wording of existing laws, thereby hurting attempts to determine the full, or “actual” delivery of the commodity. Poloniex, in turn, has responded by saying that their business practices of providing cryptocurrency exchange and margin trading do not fall under this stipulation.

Poloniex Makes a Case for Constructive Bitcoin Regulation

Due to the unique, abstract nature of cryptocurrency, determining when an “actual delivery” occurred is grey in relation to the black and white delivery of traditional commodities such as wheat or oil.

The CEA, enacted initially in 1936, states, “physical… delivery [of] the entire quantity of the commodity purchased by the buyer, including any portion of the purchase made using leverage, margin, or financing.”

While the blockchain is time-stamped, delivery of cryptocurrency itself to customers is the main question in play here. Poloniex, however, argues that the cryptocurrency at hand is delivered to the recipient immediately after the completion of an order. Whether these transactions are traditional or for lending or margin trading, the recipient takes possession, ownership, and legal control of the cryptocurrency as soon as an order is completed.

While it seems that this would free such services from this particular regulatory obligation, such questions will have to be answered in court.

Speaking to the difficulty faced by many organizations navigating the murky regulatory waters in the space and the subsequent need for further clarification, Poloniex’s press release states:

“This privilege isn’t without its challenges, because we are operating in an emerging space against a backdrop of regulations honed and crafted for yesterday’s technology — the bygone era of analogue trading. As stakeholders, stewards, and charter members of a nascent technology, it is our collective responsibility to respectfully request for laws that make sense for this new technology.”

Do you think Poloniex is right? Let us know in the comments below.


Images courtesy of Hedge Think, Poloniex.

The post Poloniex Seeks Regulatory Clarity From CFTC Following Allegations appeared first on Bitcoinist.net.

Poloniex Seeks Regulatory Clarity From CFTC Following Allegations

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