Former SEC Chair Gary Gensler’s return to MIT as a Professor of the Practice has sparked controversy among alumni, with many expressing embarrassment and frustration over his anti-crypto stance.
Gensler, who previously served as the Chair of the U.S. Securities and Exchange Commission, will be joining MIT’s Sloan School of Management to work on artificial intelligence, finance, financial technology, and public policy. He will also serve as the co-director of the FinTechAI at the Computer Science and Artificial Intelligence Laboratory, MIT’s largest research lab.
While Gensler’s appointment may seem like a prestigious addition to MIT’s faculty, his history of strict regulations on the crypto industry has left many alumni disappointed. Gensler has been known for his “Everything is a Security” stance, arguing that most cryptocurrencies other than Bitcoin should qualify as securities and fall under SEC jurisdiction.
This stance has led to criticism from Congress and other U.S. regulators, as well as resistance to the approval of spot Bitcoin ETFs. Gensler’s refusal to allow Grayscale to convert its Bitcoin Trust into an ETF was deemed “arbitrary and capricious” by a three-judge panel from the U.S. Court of Appeals for the D.C. Circuit in August 2023.
MIT graduate Devin Walsh expressed his frustration over Gensler’s return, calling it a “waste of time, tuition funds, and energy.” Walsh, who developed an interest in crypto through MIT’s Digital Currency Initiative, criticized the move as a setback for students wanting to support innovation.
Despite the backlash from alumni, Gensler’s return to MIT signals a continued focus on the intersection of finance, technology, and public policy at the prestigious institution. As Gensler takes on his new role, it remains to be seen how his anti-crypto stance will impact the MIT community and the broader financial industry.