Gary Gensler continues to receive criticizm from left and right.
Gary Gensler, now head of the US Securities and Exchange Commission (SEC), caused a stir in the crypto community after a 2018 video surfaced in which he linked cryptocurrencies to commodities or cash rather than securities.
The video was from a "Blockchain and Money" course Gensler taught at the Massachusetts Institute of Technology (MIT) in the fall of 2018, prior to his appointment as chair of the SEC.
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Gensler discussed initial coin offerings (ICOs) and remarked that "three-quarters of the market are not ICOs or not what would be called securities." During the lesson, Gensler referred to the US, Canadian, and Taiwanese markets as following a similar approach to the Howey test.
In the video, Gary Gensler stated:
Three-quarters of the market is non-securities, it's just a commodity, cash, crypto.
At that time, Gensler briefly acknowledged the potential for ICOs to spark a securities debate. However, he concluded that "three-quarters of the market is not particularly relevant as a legal matter."
Crypto community members were shocked by 2018 Gensler's comments. Coinbase CEO Brian Armstrong responded with a simple "Wow" on Twitter.
The founder of the Web3 podcast Rug Radio called Gensler "disgusting." At the same time, a systems engineer named "JD" demanded an explanation for Gensler's change in stance.
However, not everyone agreed with the uproar. US lawyer Preston Byrne pointed out that professors and law enforcers have "different capacities" and that Gensler shouldn't be held to his past views.
Blockchain technology specialist Jonathan Schmalfeld challenged this opinion, arguing that Gensler's interpretation of the Howey test shouldn't change based on his position.
I mean when I talk with clients about this stuff there are three answers, what I think the law is, how I think enforcers will interpret it, and what the law ought to be. Right now he’s limited to giving only one of those answers by virtue of his position.
Gensler's past remarks on crypto have reignited debates and attracted both criticism and defense within the crypto community. It is not the first time Genslers old opinions heated the crypto community.
Just the other week, an old video of Gary Gensler praising Algorad emerged, calling it a "great technology."
