🤖💰 Gary Gensler’s MIT Comeback: AI, Finance, and… Crypto Controversy? 💥

by

In the grand tapestry of academia and regulation, the former czar of financial oversight, Gary Gensler, is making a rather unceremonious retreat to the hallowed halls of the Massachusetts Institute of Technology (MIT). After his sojourn in the wilds of crypto regulation, where he presumably learned that Bitcoin is not just a fad but also not quite the future, he returns to the MIT flock with a new focus: artificial intelligence (AI), fintech, finance, and the art of public policy.

The MIT press release of January 27th was likely typed with a knowing wink, as it announced Gensler’s return to the institution where he once pondered the deep implications of AI on financial systems—before his regulatory adventure, that is.

“I am honored to return to MIT,” Gensler professed, no doubt with a mix of relief and a touch of nostalgia. He seems eager to collaborate with the MIT brain trust, aiming to innovate and, quite possibly, save the world through AI, finance, and tech. One can only hope he doesn’t bring his regulatory gavel to the research table.

Before his SEC escapade, Gensler was a denizen of Goldman Sachs, and then a professor at MIT, where he delved into the murky waters of AI’s impact on financial systems. His new role at MIT, at the ripe age of 67, finds him co-directing the FinTech AI @CSAIL initiative, a program that seems designed to bring the best of MIT’s geeks and the financial world’s suits together in harmonious technological exploration.

In addition to his directorial duties, Gensler will be teaming up with Nobel laureate Simon Johnson to teach a course on economic topics that are, naturally, of “great importance to the global economy.” One wonders if they’ll be using Gensler’s SEC rulebook as a textbook.

While his new position may lack the regulatory thrill of his SEC days, MIT’s strong ties with tech titans and policymakers could still give Gensler a platform to whisper sweet regulatory nothings into influential ears.

But not everyone is rolling out the academic carpet for Gensler. Devin Walsh, the executive director and co-founder of the Uniswap Foundation, has voiced her disdain for MIT’s decision to rehire Gensler. Walsh, who probably knows a thing or two about crypto, has expressed embarrassment and disappointment, suggesting that Gensler’s students might as well burn their tuition for warmth, given the lack of innovation they’ll likely encounter.

During his tenure at the SEC, Gensler took a rather…ahem…forceful approach to crypto policy, initiating a plethora of enforcement actions against crypto firms. His reign saw many cryptocurrencies classified as securities—except for Bitcoin and Ethereum, which were presumably too cool for school. His methods were criticized for stifling innovation, but he did manage to give the nod to Bitcoin and Ethereum ETFs, so there’s that.

Read More

2025-01-30 07:45