Former US SEC Chair Gary Gensler Returns to MIT Position

Former US SEC Chair Gary Gensler has returned to MIT Sloan School of Management as a Professor of the Practice, focusing on artificial intelligence, finance, financial technology, and public policy. MIT announced his appointment marking his return after serving as Chair of the Securities and Exchange Commission (SEC) under the Biden administration.

Gary Gensler Joins MIT Sloan

According to a report from MIT, former US SEC Chairman Gary Gensler, who resigned earlier this month, will be joining the institution as a Professor of the Practice in the Global Economics and Management Group and the Finance Group. He will be working in the areas of research and education in artificial intelligence, finance, financial technology and policy.

Apart from the faculty position, Gensler will also co-direct the FinTechAI@CSAIL program at the Massachusetts Institute of Technology’s Computer Science and Artificial Intelligence Laboratory. 

He will collaborate with Professor Andrew W. Lo, who will help him in the study of artificial intelligence in finance. The initiative will offer firms a chance to partner with faculty from the Massachusetts Institute of Technology on AI-based financial products.

Public Sector Career and Criticism from Lawmakers

Before rejoining MIT, Gary Gensler worked as the SEC Chair, where he was responsible for the regulation of the U.S. capital markets. His term saw more enforcement actions against cryptocurrency companies, which raised concerns among legislators.

Subsequently, Senator Cynthia Lummis has accused the SEC under his leadership of overstepping its jurisdiction as an agency of the federal government. Lummis has described these actions as ‘un-American’ insisting that the regulatory bodies should not undertake any action that has not been authorized by Congress.

Prior to SEC leadership, Gary Gensler was the Chairman of the Commodity Futures Trading Commission (CFTC) in the Obama administration. While at the CFTC, he worked to address the $400 trillion swaps market after the financial crisis that occurred in 2008. He also served as a Senior Advisor to Senator Paul Sarbanes in drafting the Sarbanes-Oxley Act of 2002.

Before joining the CFTC, Gensler was a partner at Goldman Sachs for 18 years, where he had responsibilities in mergers and acquisitions, fixed-income trading, and finance.

Faculty and Industry Reactions to Gary Gensler’s Return

MIT faculty members who taught Gary Gensler in the past welcomed him back and noted that he has strong background in finance, technology, and policy. Georgia Perakis, the interim dean of MIT Sloan, said,

“We are thrilled to have Gary return to MIT Sloan after his time at the SEC.” I am aware that our students will enhance a lot from it to learn from him.”

Simon Johnson, the Head of the Global Economics and Management Group at MIT Sloan, pointed out former SEC chair’s work in academia and his past experience as a professor. We are glad to have him back and my colleagues join me in extending this welcome. He and I will be team-teaching a new course for the first time,” said Johnson.

As the Head of the Finance Group at MIT Sloan, Paul Asquith noted that Gensler can take theoretical ideas and apply them in the real world.

“It is rather unusual to meet an educator who is as experienced in practical life as he is. In his previous time at MIT, he has been useful to both faculty and students.”

Andrew W. Lo, co-director of the FinTechAI@CSAIL initiative, acknowledged the role of Gensler in the changing financial environment. ”Gary’s return to MIT – at a time when technology is changing the face of the world – could not have been at a better time.”