TLDR
- Gary Gensler, former SEC Chair, is returning to MIT Sloan School of Management as a Professor and co-director of FinTechAI, focusing on artificial intelligence, finance, and public policy
- During his SEC tenure, Gensler led over 125 enforcement actions against crypto firms and maintained that most cryptocurrencies should be classified as securities
- Under pressure from legal rulings and political factors, the SEC approved Bitcoin ETFs in January 2024 despite Gensler’s previous resistance
- MIT graduate Devin Walsh publicly criticized Gensler’s return, calling it a “waste of time, tuition funds, and energy”
- Gensler will work alongside Nobel laureate Simon Johnson to teach courses on economic issues while conducting AI research at MIT’s largest research lab
Gary Gensler, who recently completed his term as Chairman of the Securities and Exchange Commission (SEC), is returning to MIT’s Sloan School of Management. The announcement came through an MIT press release on January 27, 2025, stating that Gensler will serve as a Professor of the Practice.
In his new role, Gensler will work within both the Global Economics and Management Group and the Finance Group. He will focus on areas including artificial intelligence, finance, financial technology, and public policy. Additionally, he will serve as co-director of FinTechAI at MIT’s Computer Science and Artificial Intelligence Laboratory.
This marks Gensler’s second stint at MIT, as he previously taught at the institution from 2018 to 2021 before accepting the position of SEC Chair during the Biden administration. During that earlier period, he taught courses on blockchain technology, which gave him insight into both the potential and risks of the technology.
As SEC Chairman, Gensler oversaw the regulation of U.S. capital markets valued at $120 trillion. His tenure was marked by a strong regulatory approach toward the cryptocurrency industry, with the SEC bringing more than 125 enforcement actions against crypto firms under his leadership.
Gensler consistently maintained that most cryptocurrencies, except for Bitcoin, should be classified as securities and therefore fall under SEC jurisdiction. This stance was clearly articulated in January 2022 at the Penn Law Capital Markets Association Annual Conference, where he stated that most crypto tokens involved entrepreneurs raising money from the public in anticipation of profits.
One of the most notable aspects of Gensler’s chairmanship was his initial resistance to approving spot Bitcoin ETFs. He cited concerns about investor protection and market manipulation as reasons for the delay. However, this position faced a setback in August 2023 when a three-judge panel from the U.S. Court of Appeals for the D.C. Circuit ruled against the SEC in the Grayscale case.
The court deemed the SEC’s refusal to allow Grayscale to convert its Bitcoin Trust into an ETF as “arbitrary and capricious.” Following this legal pressure and other factors, the SEC finally approved Bitcoin ETFs in January 2024.
At MIT, Gensler will work alongside Nobel laureate Simon Johnson, with whom he will co-teach a new course. According to Johnson, their teaching will engage students on various issues that impact the global economy.
The appointment has drawn mixed reactions from the MIT community. Devin Walsh, an MIT graduate who now serves as Executive Director and Co-Founder of the Uniswap Foundation, expressed strong criticism of the decision. Walsh, who developed an interest in cryptocurrency through MIT’s Digital Currency Initiative, described Gensler’s return as “incredibly embarrassing and disappointing.”
Before his roles at MIT and the SEC, Gensler’s career included serving as Chairman of the Commodity Futures Trading Commission under President Obama. In this position, he oversaw the implementation of reforms in the $400 trillion swaps market following the 2008 financial crisis.
In his new academic role, Gensler will lead research initiatives at MIT’s FinTechAI program, where member companies will collaborate with MIT researchers to explore new applications of AI in finance.
The timing of Gensler’s return to academia coincides with increasing focus on artificial intelligence development and regulation. His previous research, published approximately five years ago, examined systemic financial risks associated with artificial intelligence.
While Gensler’s position at MIT may not carry the same direct regulatory authority as his SEC role, his influence is expected to continue through academic research and teaching. The university’s partnerships with U.S. tech firms and policymakers suggest his work could shape future discussions about AI and finance.
MIT’s press release indicates that Gensler will begin his new duties immediately, working with both the Finance Group and the Global Economics and Management Group at the Sloan School of Management.
