Former SEC Chair Gary Gensler returned to MIT as a professor, which reignited debates over his stance on crypto regulation. In response, Gemini, led by the Winklevoss twins, announced a hiring boycott of MIT graduates. Meanwhile, politics and crypto continue to intersect after former Trump campaign co-manager Chris LaCivita joined Coinbase’s advisory council to push for pro-crypto policies. Gary Gensler Returns to MIT Gary Gensler, the former chair of the Securities and Exchange Commission (SEC), recently returned to the Massachusetts Institute of Technology (MIT) as a professor, where he will focus on artificial intelligence in finance, financial technology, and regulatory policy. According to an official announcement, Gensler will also co-direct MIT’s FinTech AI @CSAIL initiative, This is a collaboration between the university and private sector firms to explore advancements in AI technology. Before leading the SEC under the Biden administration from 2021 to 2024, Gensler was already a part of MIT’s academic community, and taught from 2018 to 2021. Gensler teaching in 2018 During his tenure as SEC chair, Gensler took a very firm stance against the cryptocurrency industry by classifying most digital assets as unregistered securities and pursuing numerous enforcement actions against crypto firms. His return to MIT, however, reignited discussions about his past views on blockchain technology. While teaching at MIT, Gensler actually delivered some pro-crypto remarks, which completely contradicted the regulatory approach he later adopted at the SEC. In a lecture titled “Secondary Markets and Crypto Exchanges,” he stated that three-quarters of the crypto market were not initial coin offerings (ICOs) and, therefore, did not qualify as securities under regulatory standards used in the US, Canada, and Taiwan. He also praised Algorand’s technology due to its ability to support complex smart contract operations. Despite his comments in the past, under Gensler’s leadership , the SEC classified Algorand’s native asset, ALGO, as an unregistered security in multiple enforcement cases, including its high-profile lawsuit against Binance. Naturally, this contradiction led to many accusations of hypocrisy from the crypto community. After his departure from the SEC, the crypto industry saw the leadership transition as an opportunity for regulatory clarity in the United States. In anticipation of a more favorable approach, several firms submitted applications for crypto exchange-traded funds (ETFs), including proposals for meme coin-focused investment funds. Gemini Bans MIT Graduates Over Gary Gensler’s Return Gemini, the crypto exchange that was founded by Tyler and Cameron Winklevoss, announced that it will not hire any graduates from MIT unless the university severs ties with former SEC chair Gary Gensler. In a statement posted on X , Tyler Winklevoss made it very clear that Gemini will not only refuse to hire MIT graduates but also exclude them from its summer internship program as long as Gensler remains associated with the institution. The decision stems from Gensler’s history with the SEC, where he spearheaded a series of enforcement actions against the crypto industry, including a lawsuit against Gemini over its Earn program. In March last year, Gemini agreed to pay a $21 million fine to settle SEC claims that the program, which was offered in partnership with the now-bankrupt crypto firm Genesis, constituted an unregistered securities sale. The enforcement action was led by Gensler. The crypto community long viewed Gensler's leadership as hostile, and the Winklevoss' call for a hiring boycott already received a lot of support from well known people in the industry like Bitcoin advocate Erik Voorhees. He also urged all crypto firms to refuse to hire MIT graduates until Gensler is removed. The industry took similar actions against SEC affiliates in the past. Coinbase, one of the largest US crypto exchanges, stopped working with the law firm Milbank after it hired former SEC official Gurbir Grewal in December. Coinbase CEO Brian Armstrong has been very vocal about avoiding firms that employ individuals who tried to undermine the industry while failing to establish any clear regulations. Despite the support for Gemini’s stance, others in the crypto space believe the approach may be a bit excessive. Sergey Gorbunov of Axelar Network stated that punishing students for Gensler’s actions was unnecessary and offered to hire MIT graduates. Arkham’s head of UK legal, Preston Byrne , agreed with this, and stated that while avoiding law firms employing former SEC enforcers was understandable, a blanket refusal to hire MIT graduates was an overreach. Some proposed other strategies. Jiasun Li, an associate professor at George Mason University and a blockchain advocate, suggested that instead of blacklisting all MIT graduates, crypto firms should specifically avoid hiring students who enroll in Gensler’s classes. The Winklevoss twins have been outspoken about their belief that any company or university employing Gensler is betraying the cryptocurrency industry. In a post from Nov. 16, they said that no apology could undo the damage Gensler inflicted on both the industry and the country. For now the SEC is under the leadership of Mark Uyeda, who was among the commissioners that voted in favor of spot Bitcoin ETFs in January of 2024. As a result, many people in the crypto space believe the regulatory landscape may shift. Hester Peirce, another commissioner who supported the Bitcoin ETF approval, has also been appointed to lead the SEC’s newly formed crypto task force. Trump Ally Chris LaCivita Joins Coinbase It is very clear that politics and the crypto industry are becoming more intertwined by the day. Chris LaCivita, former co-campaign manager for Donald Trump’s 2024 presidential campaign, joined crypto exchange Coinbase’s Global Advisory Council to provide guidance on digital asset regulation. The exchange announced on Jan. 29 that LaCivita will join other high-profile people, including former US Senator Kyrsten Sinema, former New York Fed president Bill Dudley, and former Colombian Ambassador to the US Luis Alberto Moreno. LaCivita has strong ties to the Republican National Committee and is expected to keep his connection with the Trump administration. LaCivita criticized the approach that was taken by former President Joe Biden’s administration toward crypto regulation, and stated that the industry deserves better. His stance aligns with Trump’s promises to position the United States as a leader in digital assets. Coinbase established its advisory council in May of 2023 to navigate the very complicated regulatory environment surrounding crypto. The group included several former lawmakers, like former Senator Pat Toomey, and its main goal is to help shape the future of crypto regulation in the US and abroad. Coinbase CEO Brian Armstrong also met with Trump in November after the presidential election to discuss potential personnel appointments. The exchange supports Trump’s administration, and even donated $1 million to his inauguration fund. This stance is a major shift from Armstrong’s 2020 declaration that Coinbase will not engage in political endorsements or support causes unrelated to its mission. After receiving a Wells notice from the SEC in 2023, which later led to a lawsuit, Coinbase ramped up its political efforts by contributing $45 million to elect pro-crypto candidates in 2024. With Trump now in office, some industry executives believe the SEC’s leadership could take a different approach to enforcement actions, and could potentially drop certain cases, including the one against Coinbase.
