Gary Gensler

Gary S. Gensler Occupation Professor of the Practice Employer MIT Location Washington, D.C. Twitter @GaryGensler Website www.MIT.edu Gary Scott Gensler is an American economist and government official who is a professor of the practice of Global Economics and Management as well as of Finance at MIT. He previously served as the chairman of the U.S. Securities and Exchange Commission (SEC) and also served as chairman of the U.S. Commodity Futures Trading Commission (CFTC). Since leaving the private sector, Gensler has held various significant positions in government and academia. Background Gensler was born on October 18, 1957, in Baltimore, Maryland. He grew up in a family with a background in business, as his father was a machine vendor to local bars and restaurants. Gensler is a past treasurer of the Maryland Democratic Party. He later sought to become party chairman. He acted as a senior advisor to Senator Paul Sarbanes, chairman of the Senate Banking Committee, on drafting the 2002 Sarbanes-Oxley Act. Gensler was in charge of the Obama transition team reviewing the SEC, and some speculated that he might be put in charge of that agency. Massachusetts Institute of Technology (MIT) Gensler is professor of the practice of global economics and management and professor of the practice of finance at the MIT Sloan School of Management, where he teaches and conducts research on artificial intelligence, finance, financial technology, and public policy. He is the co-director of FinTechAI@CSAIL, an initiative within MIT's Computer Science and Artificial Intelligence Laboratory, and senior advisor to the MIT Media Lab Digital Currency Initiative. Gensler won the MIT Sloan Outstanding Teacher Award for the 2018–2019 academic year based on student nominations and was recognized for his course "Blockchain and Money," which covered blockchain technology, digital currencies, and their public policy implications. Gensler returned to MIT Sloan in January 2025, following the end of his term as SEC chairman on January 20, 2025, and resumed his faculty position, focusing on the intersection of AI and financial markets. He teaches courses including "AI and Money" during Independent Activities Period (IAP) 2026 and is listed in the MIT Sloan 2025–2026 course catalog alongside new offerings such as "Intensive Hands-On Deep Learning" and "The Arrhythmia of Finance." His current research and teaching portfolio reflect the evolving intersection of financial regulation, technology, and economic policy in the post-SEC environment. Power & Consequences Podcast Gensler and fellow MIT Sloan professor Simon Johnson launched the podcast "Power & Consequences" in early 2026, targeting young professionals interested in economic policy debates during the second Trump administration. The podcast draws inspiration from their MIT course "Public Policy & the Private Sector" (15.230), now in its sixth year, and their co-edited 2025 book The Economics of the Second Trump Administration, published by CEPR Press. Episodes are released weekly and examine policies through the lenses of history, economics, power dynamics, institutions, and political trends. The hosts state that the views expressed represent their own and not those of MIT or other organizations. The podcast is available on Apple Podcasts, Spotify, Pocket Casts, and other platforms, and is complemented by a Substack newsletter providing related readings and updates. Amicus Brief As amicus curiae in KalshiEX LLC v. Schuler before the U.S. Court of Appeals for the Sixth Circuit, Gensler argued that Congress never intended the Commodity Futures Trading Commission to become a national sports betting regulator when it enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. Drawing on his experience leading the CFTC’s implementation of Dodd-Frank and his earlier role in negotiating the Commodity Futures Modernization Act of 2000, he asserted that the Commodity Exchange Act’s derivatives framework was designed to support hedging and price discovery in commodities and financial markets and to address systemic risks from over-the-counter swaps, not to federalize sports wagering or displace long-standing state gaming regimes such as Nevada’s. In the brief, Gensler rejected the contention that sports-betting style event contracts fall within Dodd-Frank’s statutory definition of “swap,” warning that such an interpretation would imply that most off-exchange retail sports bets in the United States have been unlawful since 2012 and would silently preempt state authority over an industry generating more than $100 billion in annual handle. He emphasized that neither Congress nor the CFTC discussed sports betting during the Dodd-Frank legislative and rulemaking processes, that the Act’s “Special Rule” on event contracts was intended to allow the CFTC to bar gaming-related products from regulated exchanges, and that under the Supreme Court’s “no elephants in mouseholes” doctrine, a shift of sports-betting oversight from the states to the CFTC could not reasonably be inferred from a definitional sub-clause in the swaps provisions. U.S. Department of the Treasury (1997-2001) Under President Bill Clinton, Gensler served as Assistant Secretary for Financial Markets and later as Under Secretary for Domestic Finance. He played a role in financial market oversight and was involved with the Long-Term Capital Management crisis. Gensler served in the Department of Treasury from 1997 to 2001. As undersecretary for domestic finance in 2000, Gensler publicly backed legislation that would have cut Fannie Mae and Freddie Mac's then $2.25 billion line of credit with Treasury. The remarks roiled the debt markets, causing investors to dump securities issued by the two government sponsored enterprises. The Treasury department subsequently issued a statement reassuring the market that Gensler's testimony did not portend a policy shift and was not consistent with longstanding Clinton administration policies in this area. On Sept. 20, 1998, while assistant Treasury secretary, Gensler visited the offices of Long-Term Capital Management, along with New York Federal Reserve President William McDonough and Executive Vice President Peter Fisher and bankers from J.P. Morgan and Goldman Sachs, to inspect the books of the hedge fund. They discovered that the notional value of all of LTCM's position totaled a surprising $1 trillion. This visit was the day before McDonough decided to intervene in the LTCM situation. Gensler subsequently testified to the U.S. House Committee on Banking and Financial Services in May of 1999 about a report from the President's Working Group on Financial Markets titled "Hedge Funds, Leverage, and the Lessons of Long-Term Capital Management." Commodity Futures Trading Commission (CFTC) (2009-2014) Appointed by President Barack Obama, Gensler was the 11th chairman of the Commodity Futures Trading Commission (CFTC), serving from May 2009 to January 3, 2014. He was nominated to that position in December of 2008 by president-elect Obama. He led significant reforms in the $400 trillion swaps market following the 2008 financial crisis and implemented key provisions of the Dodd-Frank Act. The U.S. Senate confirmed Gensler to head the CFTC on May 19, 2009. However, Senator Bernie Sanders and another unidentified lawmaker placed a hold on the nomination because Gensler had previously worked alongside Robert E. Rubin and Alan Greenspan to block CFTC proposals to regulate credit default swaps. Gensler also supported the Gramm-Leach-Bliley Act, which enabled the merger of banks, stock brokerage companies, and insurance companies. Credit default swaps have been blamed for having played a role in the collapse of American International Group and Bear Stearns. While at the CFTC, Gensler brought massive financial reforms to the unregulated $400 trillion swaps market after the financial crisis of 2008. Under his leadership, the agency implemented swap market reforms contained in the Dodd-Frank Act, including the requirement that the world's largest swap dealers register with the CFTC. He also led the agency in charging five major financial institutions with manipulating the LIBOR and other benchmark interest rates and championed new rules requiring one of the banks, Barclays, to report rates based on actual transactions when possible and to prevent conflicts of interest. Gensler's term ended on January 3, 2014. Prior to Gensler's departure, President Barack Obama nominated Timothy Massad to succeed Gensler as Chairman. Massad assumed the chairmanship in June 2014. U.S. Securities and Exchange Commission (SEC) (2021-2025) Nominated by President Joe Biden and confirmed by the Senate in April 2021, Gensler became chairman of the SEC. His tenure has focused on cryptocurrency regulation, enhancing market transparency, and expanding investor protections. Cryptocurrency Regulation Gensler has been a prominent figure in the regulation of cryptocurrencies, emphasizing the need for crypto exchanges to register with the SEC as securities trading platforms. He has highlighted the risks associated with digital assets, including their volatility and potential for fraud. Under his leadership, the SEC has scrutinized many digital currencies as unregistered securities and has brought numerous enforcement actions against actors in the crypto space. Gensler's approach seeks to increase transparency and protect investors by ensuring compliance with existing securities laws. Bitcoin ETF Approvals Gensler's tenure as a regulator also saw significant developments regarding Bitcoin exchange-traded funds (ETFs). He was cautious about approving spot Bitcoin ETFs because of concerns about market manipulation and investor protection. In 2024, when the SEC approved spot Bitcoin ETFs, he said in his "Statement on the Approval of Spot Bitcoin Exchange-Traded Products" that circumstances had changed. "The U.S. Court of Appeals for the District of Columbia held that the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP.... The court therefore vacated the Grayscale Order and remanded the matter to the Commission. Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares," Gensler wrote in the statement. Regulation by Enforcement Gensler's approach to crypto regulation has been described as "regulation by enforcement." This strategy involves taking legal action against firms that violate securities laws, as seen in cases like Ripple (XRP) and celebrity endorsements of crypto projects. The SEC under Gensler has charged several high-profile individuals and companies to enforce compliance and protect investors from fraudulent activities. Examination Priorities In addition to cryptocurrency regulation, Gensler has overseen the SEC's Division of Examinations' annual priorities. These include focusing on information security, operational resiliency, and emerging technologies. The division aims to ensure that broker-dealers and investment advisers adhere to compliance standards while addressing risks associated with new financial technologies. Goldman Sachs (1979-1997) Gensler began his career at Goldman Sachs in 1979. During his tenure, he became one of the youngest partners at age 30 and held various leadership roles, including co-head of finance and head of the firm's media group. Gensler spent 18 years with Goldman Sachs before becoming a senior advisor for the Hillary Clinton for President Exploratory Committee. He was a Hillraiser fundraiser for Clinton and later contributed to the presidential election campaign of Barack Obama. Author He is also the co-author of the book The Great Mutual Fund Trap, which promoted the idea that active trading and investing is an inefficient strategy for individual investors, and that individuals should stick with index and exchange traded funds. Ironically, Gensler's twin brother Robert Gensler runs an actively-managed fund for T. Rowe Price. In a 2003 column, Marketwatch columnist Paul B. Farrell named Gensler and The Great Mutual Fund Trap co-author Greg Baer heroes of fund reform. Other Activities Gensler also served as Hilary Clinton's chief financial officer in the 2016 presidential election, as a senior advisor to Hillary Clinton’s 2008 campaign and subsequently as an economic advisor for the Obama 2008 campaign. In March of 2006, Gensler was appointed to the board and named audit chair of Wageworks, an educational benefits organization founded in 2000. Gensler has also served audit committee chair of Strayer Education, Inc., treasurer of the Baltimore Museum of Art and Trustee of The Bryn Mawr School and Enterprise Community Partners as well as a number of other community and civic organizations. Gensler is a mountain climber and marathon runner. As of July of 2012, he had climbed Mount Kilimanjaro and finished nine marathons and one 50-mile race. Education Gensler holds an MBA and a bachelor of science degree in economics from the Wharton School of Business at the University of Pennsylvania, where he graduated summa cum laude. Notable Accomplishments Gensler has been recognized for his contributions to financial regulation with awards such as the Alexander Hamilton Award from the U.S. Treasury and the Frankel Fiduciary Prize. Published Works The Great Mutual Fund Trap - (Random House) - ISBN 978-0-7679-1073-6 References

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