Profile: Regulators and Policy Makers

Regulators and policy makers are key forces shaping the external environment for blockchain industry development. Their decisions directly impact the industry's compliance pathways, innovation space, and market access.

1. Gary Gensler

• Position: Chairman of the US Securities and Exchange Commission (SEC).

• Background & Experience: Former Goldman Sachs partner, served in Clinton and Obama administrations, previously chaired the Commodity Futures Trading Commission (CFTC). Before joining the SEC, he taught courses on blockchain and cryptocurrency at MIT Media Lab, having deep understanding of the technology.

• Major Contributions/Actions:

  • "Regulation by Enforcement" Strategy: During his tenure, the SEC adopted a tough "regulation through enforcement" strategy toward the crypto industry, filing lawsuits against numerous crypto companies including Coinbase, Binance, and Ripple.
  • Treating Most Crypto Assets as Securities: He repeatedly emphasized that except for Bitcoin, he believes the "vast majority" of crypto tokens meet the definition of securities (based on the Howey test), and therefore must register with the SEC and comply with related disclosure and investor protection rules.
  • Approved Spot ETFs: Despite his personal critical stance toward the crypto industry, under pressure from court rulings, the SEC ultimately approved spot Bitcoin and Ethereum ETFs during his tenure.

• Impact Assessment: The regulator with the greatest impact on the US and global crypto industry in recent years. His tough stance forced the industry to prioritize compliance issues, but he's also widely criticized for "regulatory uncertainty," considered a factor hindering US crypto innovation. His every action and statement causes dramatic market volatility.

• Key Perspectives: "This field is rife with fraud, abuse, and misconduct." He believes the crypto market lacks sufficient investor protection and insists on using existing securities laws to regulate this emerging industry, believing no new rules need to be tailored for the crypto industry.

• Controversies & Criticisms: The crypto industry and some Congress members severely criticize Gensler's strategy as "abuse of power," arguing he refuses to provide clear regulatory guidance while attacking the industry through litigation, stifling innovation. His stance on whether Ethereum is a commodity or security has long been unclear, bringing enormous uncertainty to the market.

• Current Status & Future: His tenure and the SEC's policy direction are market focal points. With US elections and changing Congressional political landscape, the SEC's attitude toward the crypto industry may change in the future. However, the series of lawsuits against major companies initiated during his tenure will continue impacting industry structure for years to come.

2. Christine Lagarde

• Position: President of the European Central Bank (ECB), former Managing Director of the International Monetary Fund (IMF).

• Background & Experience: French lawyer and politician who has held top leadership positions at multiple international premier financial institutions, with extensive experience in global macroeconomics and financial regulation.

• Major Contributions/Actions:

  • Active Promoter of Digital Euro: She is one of the most active advocates for Central Bank Digital Currency (CBDC) among global major central bank leaders. She has led the ECB in vigorously advancing the digital euro project, which has now entered the "preparation phase."
  • Critical Stance on Private Cryptocurrencies: She holds highly skeptical and critical attitudes toward private cryptocurrencies represented by Bitcoin, considering them speculative assets with no intrinsic value and often used for illegal activities.

• Impact Assessment: Important decision-maker for European and global monetary policy. Her active promotion of the digital euro is accelerating the global central bank research and development process for CBDCs. Her negative stance on private cryptocurrencies also reflects mainstream European regulatory institutions' general concerns.

• Key Perspectives: "We (central banks) must stay ahead of the curve." She believes that in the digital age, if central banks don't provide digital forms of money, this role will be taken by private companies (such as stablecoin issuers) or foreign central banks, potentially eroding eurozone monetary sovereignty. She emphasizes the digital euro will complement rather than replace cash, with privacy protection as the highest design priority.

• Controversies & Criticisms: The digital euro project itself faces some controversy, including concerns about its necessity, privacy protection, and potential impact on the commercial banking system. Some critics believe her dismissive attitude toward private cryptocurrency innovation is too absolute.

• Current Status & Future: Continues leading the ECB in various preparations for the digital euro, cooperating with EU legislative bodies to pave the legal path for its future launch. Her tenure will have decisive influence on the digital euro's final form and launch timeline.

3. Yi Gang

• Position: Former Governor of the People's Bank of China (PBoC).

• Background & Experience: Economist who obtained his economics PhD from Indiana University and taught at the University of Illinois. Long served at the People's Bank of China, deeply involved in China's financial reform and monetary policy formulation.

• Major Contributions/Actions:

  • Leader of Digital Renminbi (e-CNY): During his tenure, the People's Bank of China was first among major global economies to initiate and vigorously advance the research and pilot work of central bank digital currency—the digital renminbi. The pilot scope and application scenarios of the digital renminbi continue expanding.
  • Strict Regulation of Cryptocurrencies: During his tenure, the Chinese government continued and strengthened strict regulatory policies on private cryptocurrencies, comprehensively banning cryptocurrency trading and mining activities.

• Impact Assessment: Leader in global CBDC development. The research progress and design philosophy of the digital renminbi (such as "controllable anonymity" and dual-tier operating system) have received close attention and study globally, providing important practical reference for other countries' CBDC exploration.

• Key Perspectives: He emphasized that the primary purpose of launching the digital renminbi is to meet domestic retail payment needs and improve payment system efficiency and security. When discussing privacy issues, he proposed the concept of "controllable anonymity," meaning protecting users' reasonable anonymity needs while retaining the ability to combat money laundering, terrorist financing, and other illegal activities.

• Controversies & Criticisms: External concerns about the digital renminbi mainly focus on privacy protection and potential social surveillance risks. The severe crackdown on cryptocurrencies is also considered by some as potentially suppressing innovation in fintech.

• Current Status & Future: Yi Gang stepped down as People's Bank of China Governor in 2023. The digital renminbi project he vigorously promoted continues developing and expanding pilots under new leadership.

4. Jerome Powell

• Position: Chairman of the US Federal Reserve.

• Background & Experience: Has lawyer and investment banking background. Before joining the Federal Reserve, worked at private equity firms like Carlyle Group.

• Major Contributions/Actions:

  • Cautious Stance on CBDC: Compared to the European Central Bank, the Federal Reserve under Powell's leadership is much more cautious about issuing a digital dollar. He emphasizes the need for extensive research and public consultation before taking any action, clearly stating Congressional authorization is needed.
  • Regulatory Focus on Stablecoins: He has repeatedly stated that stablecoins are the part of the crypto ecosystem most needing regulatory frameworks, believing improper regulation could pose risks to financial stability.
  • Open but Prudent Stance on Bank Crypto Business: He stated the Fed won't prevent banks from serving crypto clients in "safe and sound" ways but will strictly regulate high-risk activities like banks directly holding crypto assets.

• Impact Assessment: The world's most important monetary policy maker. His decisions on the dollar and interest rates directly impact global financial market liquidity, thus profoundly affecting crypto markets as risk assets. His cautious attitude toward the digital dollar has also slowed the US pace in the CBDC race.

• Key Perspectives: "We have a responsibility to get things right first, not to be first." This is his basic stance on the digital dollar. He believes that as the issuer of the global reserve currency, the US needs to carefully weigh the potential benefits and drawbacks of a digital dollar, ensuring it won't harm monetary policy implementation and financial stability.

• Controversies & Criticisms: Some crypto advocates criticize the Federal Reserve for moving slowly in formulating crypto banking service rules, creating regulatory uncertainty. His response to inflation (interest rate hiking cycle) was an important external macroeconomic factor causing the 2022 crypto bear market.

• Current Status & Future: Continues leading the Federal Reserve in addressing complex macroeconomic environments. In the crypto field, the Fed will continue researching the digital dollar and strengthen regulation of bank crypto activities. His monetary policy decisions will continue being key variables affecting crypto markets.