After initially being tapped for President Joe Biden's transition team, Gary Gensler is now confirmed by the Senate for a post at the U.S. Securities Exchange Commission (SEC). Gensler's appointment comes at a time when the SEC faces numerous trying tasks, from the lingering fallout of the GameStop
Gensler, a former Obama administration official, first began his tenure with the Biden administration in November, when he was tapped for the then President-Elect's transition team. Rumors began surfacing in January that Gensler was being considered for the SEC's head before President Biden formally nominated Gensler.
"Chairman Gensler is an experienced regulator who will bring a wealth of knowledge to a challenging set of issues before the SEC and the financial industry," Walt Lukken, CEO of the Futures Industry Association, commented.
Gensler arrives when the SEC has its hands full with several high-profile cases, from the "gaming of GameStop" to the Archegos fiasco. GameStop, in particular, appears to be a rather popular topic at the moment, given the attention that the events of earlier this year continue to receive from analysts, investors, and the media.
"The SEC should create a minimal level of short-sale disclosure," Pat Healy of the Issuer Network told CNBC, referring to the need for a government response to GameStop. "That would alert the market that a big fish is taking a position, which is the parallel disclosure that is done when investors take long positions. This is the only part of the market that has no disclosure requirements."
Implementing regulation for crypto assets also appears to be a pertinent topic that Gensler will have to contend with in his new post. As some experts have pointed out, however, Gensler's past experiences with the Obama administration may help him with the task of approaching cryptocurrencies.