Contra Gensler and the Chinese Mirror

Source: EconLog
by Pierre Lemieux

“Gary Gensler, the chairman of the Securities and Exchange Commission, may be everything a classical liberal wants to avoid. I will take him as representative of the federal bureaucracies that want to control cryptocurrencies and the emerging decentralized finance (‘DeFi’) markets. … Gensler thinks that investors need his protection. He says that the ‘robust enforcement and examinations regimes … are essential to protecting investors, maintaining fair, orderly, and efficient markets.’ What about free markets instead of what politicians and bureaucrats think is ‘fair, orderly, and efficient?’ … Apparently, he needs to dictate what he thinks investors want — shibboleths like ‘environmental, social, governance’ (ESG) disclosures — because only the government, as opposed to markets, can give people what they want. Also unsurprisingly, he complains that his agency does not have enough money and staff.” (09/27/21)