US SEC Chair Nominee Gensler Considered a 'Regulation Advocate'

▲Gary Gensler [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] It has been reported that President-elect Joe Biden plans to nominate Gary Gensler, a former Commodity Futures Trading Commission (CFTC) chairman known as a 'Wall Street regulator,' as the chairman of the U.S. Securities and Exchange Commission (SEC). Major foreign media outlets have stated that this signifies a strengthening of regulations on Wall Street.

On the 12th (local time), The Wall Street Journal (WSJ) reported, citing close aides of President-elect Joe Biden, that the next administration will nominate Gensler as the SEC chairman.

Gensler, a former Goldman Sachs global investment banker, worked for over 20 years at leading investment banks and had advocated for deregulation by the government. However, after being criticized for not imposing strict regulations on derivatives in the 1990s, which was said to have led to the financial crisis a decade later, he shifted to a regulatory stance. From 2009 to 2014, immediately following the financial crisis, he served as the CFTC chairman and led efforts to strengthen regulations on financial market derivatives. During this period, he created the regulatory framework for the derivatives market and formulated key reform policies during the financial crisis, earning a reputation on Wall Street as a tough regulator who did not cater to his own interests or those of stakeholders. This earned him the ire of Wall Street banks.

Barbara Roper, Director of Investor Protection at the U.S. Consumer Federation, evaluated, "While leading the CFTC, Gensler built a reputation as a smart and strict regulatory agency dedicated to investor protection."

In this context, foreign media reported that his appointment would mean a reversal of the four years of deregulation enjoyed by Wall Street banks, brokers, funds, and public companies under SEC Chairman Jay Clayton, who was appointed by President Donald Trump.

Gensler also worked at the Treasury Department during the Bill Clinton administration and advised on economic policy during Hillary Clinton's two presidential campaigns. Since 2018, he has been lecturing on blockchain and cryptocurrencies at the Massachusetts Institute of Technology (MIT) Sloan School of Management. Since November last year, he has joined the Biden-Harris transition team, leading the financial policy team.

Meanwhile, neither former Chairman Gensler nor the Biden spokesperson responded to requests for comment.

This content was produced with the assistance of AI translation services.