Alumni Cringe as Gary Gensler Returns to MIT: The Ultimate Plot Twist! 😂

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In the grand tapestry of academia, where the threads of knowledge intertwine with the fabric of human folly, there emerges a figure both revered and reviled: Gary Gensler, the erstwhile Chair of the U.S. Securities and Exchange Commission. With a flourish befitting a character from a Dostoevskian novel, he reenters the hallowed halls of MIT’s Sloan School of Management, now adorned with the title of Professor of the Practice. One can only imagine the collective gasp of alumni, their faces a portrait of embarrassment, as if they had just discovered their favorite childhood hero was, in fact, a villain in disguise. 😳

As he takes his place among the Global Economics and Management Group and the Finance Group, Gensler is set to delve into the murky waters of artificial intelligence, finance, and the ever-elusive realm of public policy. The press release, dated January 27, reads like a proclamation from a czar, heralding his return to the academic fold. Yet, one must ponder: is this a return to glory or a descent into chaos? 🤔

In addition to his professorial duties, Gensler will co-direct the FinTechAI at the Computer Science and Artificial Intelligence Laboratory, MIT’s largest research lab. It is here, amidst the whirring of machines and the clatter of keyboards, that he will attempt to navigate the treacherous waters of innovation and regulation, a task akin to herding cats—if those cats were also armed with cryptocurrency and a penchant for rebellion.

Before his tenure as SEC Chair during the Biden administration, where he presided over the staggering $120 trillion U.S. capital markets, Gensler was a Professor of the Practice at MIT Sloan from 2018 to 2021. His previous role as Chairman of the Commodity Futures Trading Commission under President Obama saw him grappling with the aftermath of the 2008 financial crisis, a time when the world was still reeling from the shock of economic collapse.

Gensler’s Anti-Crypto Stance: A Comedy of Errors

Within the vibrant, albeit chaotic, world of cryptocurrency, Gensler has earned a reputation for his infamous declaration: “Everything is a Security.” His contentious relationship with Congress and other U.S. regulators resembles a tragicomedy, with Gensler playing the role of the stern father figure, chastising the rebellious children of the crypto realm. His criticism of proposed bills aimed at clarifying the regulatory framework for cryptocurrencies has left many scratching their heads in disbelief.

In a moment of profound wisdom—or perhaps folly—he proclaimed that most cryptocurrencies, save for the illustrious Bitcoin, should be classified as securities, thus falling under the watchful eye of the SEC. At the Penn Law Capital Markets Association Annual Conference in January 2022, he stated, “The fact is, most crypto tokens involve a group of entrepreneurs raising money from the public in anticipation of profits—the hallmark of an investment contract or a security under our jurisdiction.” One can almost hear the collective sigh of frustration from the crypto enthusiasts, as if they were trapped in a never-ending farce.

The consequences of such stringent regulations have left many projects in a state of legal limbo, a predicament that President Donald Trump is now attempting to unravel. Gensler’s resistance to the approval of spot Bitcoin ETFs, citing the need for investor protection and concerns about market manipulation, has only added fuel to the fire of discontent.

In August 2023, a three-judge panel from the U.S. Court of Appeals for the D.C. Circuit ruled against the SEC, declaring the agency’s refusal to allow Grayscale to convert its Bitcoin Trust into an ETF as “arbitrary and capricious.” It was not until January 2024, under the weight of legal and political pressure, that the SEC finally relented. A classic case of “better late than never,” one might say, though the crypto community was left wondering if they had been cast in a tragic play.

Amidst this swirling tempest, MIT graduate Devin Walsh did not hold back his disdain for Gensler’s return, labeling it a “waste of time, tuition funds, and energy.” Walsh, who had fallen in love with the world of cryptocurrency through MIT’s Digital Currency Initiative, expressed his disappointment for students yearning to support innovation. His words echoed through the digital ether, a lamentation for the lost dreams of a generation.

as an @MITSloan graduate, incredibly embarrassed and disappointed to see them rehire Gensler

MIT was where I first learned about and fell in love with crypto through independent work with the @mitDCI

a waste of time, tuition funds, and energy for any student hoping to study and…

— Devin Walsh (@devinawalsh) January 29, 2025

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2025-01-29 08:39