President-elect Joe Biden will appoint Gary Gensler as the new chairman of the Securities and Exchange Commission (SEC) to replace Elad Roisman. During Obama’s tenure, Gensler headed the US Commodity Futures Trading Commission (CFTC) from 2009 to 2014.
The former banker joined Biden’s transition team in November
According to the two unnamed Reuters sources, Biden finally made it decided following the resignation of Jay Clayton as chairman in December. Gensler is a well-known figure in the crypto industry, especially in academia.
During Trump’s tenure, the former Goldman Sachs banker taught courses on crypto assets and blockchain at the MIT Sloan School of Management. Sources familiar with the matter told Reuters that Gensler could seek “stricter regulations”, which raises concerns among Wall Street firms.
If this were confirmed by the Senate, which is mostly controlled by Democrats, Gensler would also lead the regulator’s battle against Ripple Inc.
The former banker also led Biden’s financial policy transition team in November. That fact increased the likelihood that the Wall Street veteran would likely take on an SEC role.
Former SEC chairman Jay Clayton, who was replaced by Elad Roisman, was known for pursuing his first coin offerings. During his tenure, the regulator also released a report stating that digital assets could be treated as securities.
How will the Ripple litigation be resolved with Gensler as chairman?
Under Gensler’s leadership, the SEC vs. Ripple saga could have a negative impact on the blockchain company based on the former banker’s earlier statements.
Gensler gave a speech at an MIT conference in 2018 said There’s a “strong argument” for XRP classified as security. In fact, the Wall Street veteran claimed that Ripple is “doing a lot to add to the value of XRP. ”
On Jan. 7, Brad Garlinghouse, CEO of Ripple, addressed some of the SEC’s allegations. At the time, he said the company would file its first legal response “within weeks.”
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