"Gensler Joins MIT to Tackle AI Risks in Crypto; Lummis Challenges SEC's Crypto Power Grab"

Gary Gensler, the former chair of the U.S. Securities and Exchange Commission (SEC), has taken on a new role at the Massachusetts Institute of Technology (MIT). In this capacity, Gensler will explore the risks and challenges associated with artificial intelligence (AI) amid the ongoing U.S. crypto regulation landscape.

Gensler's appointment at MIT comes as the crypto industry continues to grapple with regulatory uncertainty. His expertise in financial regulation and his tenure at the SEC make him a valuable addition to the MIT team. Gensler's new role will focus on understanding the potential risks and implications of AI in the context of cryptocurrencies and other digital assets.

Meanwhile, U.S. Senator Cynthia Lummis has been challenging the SEC's overreach in its enforcement actions against Coinbase. Lummis filed an amicus curiae brief in the case Coinbase vs. SEC at the U.S. Court of Appeals for the Second Circuit, opposing what she calls an unlawful power grab by the agency. She argues that the SEC's aggressive tactics under Chair Gary Gensler have gone beyond its legal authority, forcing digital asset exchanges to comply with regulations that have never been properly debated or approved by lawmakers.

Lummis criticizes the SEC's secret reinterpretation of laws like the Howey Test, which determines whether an asset qualifies as an investment contract. She believes that only Congress has the constitutional authority to define whether digital assets should be treated as securities or commodities. The SEC's tactics, she warns, could have severe consequences for the digital asset industry, potentially slowing innovation and creating legal uncertainty.

In response to the SEC's actions, Coinbase recently secured a partial victory in its battle with the agency. The U.S. Court of Appeals ruled that the SEC had not provided a strong enough explanation for denying Coinbase's request for clear regulatory guidelines. This ruling could influence the ongoing case and force the SEC to clarify its position.

With multiple lawsuits challenging the SEC's authority, the outcome of this case could have far-reaching implications for the crypto industry. Lummis hopes her intervention will help establish clear legal boundaries and protect innovation in the digital asset sector.