The President-elect of the United States, Biden, was appointed to name Gary Gensler as the new chairman of the US Securities and Exchange Commission (SEC), succeeding Elad Roisman. During the Obama administration, Gensler led the US Commodity Futures Trading Commission (CFTC) from 2009 to 2014.
The former banker became a member of Biden’s transition team in November
According to two sources from Reuters who asked not to be named, following Jay Clayton’s resignation as chairman in December, Biden finally decided on the final decision to lead the Securities and Exchange Commission. Gensler is a well-known figure in the encryption industry (especially in the academic field).
During the Trump administration, the former Goldman Sachs banker taught courses on crypto assets and blockchain at the Sloan School of Management at MIT. A source familiar with the matter told Reuters that Gensler may be aiming for “stricter regulations,” causing concerns for Wall Street firms.
If confirmed by the Senate, which is mainly controlled by Democrats, Gensler will also lead the regulator’s fight against Ripple Inc.
The former banker also led Biden’s financial policy transition team in November. This fact increases the possibility that Wall Street veterans will be appointed to the US Securities and Exchange Commission.
Jay Clayton, the former chairman of the US Securities and Exchange Commission, was replaced by Elad Roisman and is known for his initial token issuance pursuit agenda. During his tenure, the regulator also issued a report announcing that digital assets can be considered securities.
With Gensler as chairman, how to resolve the legal struggle with ripple?
Under Gensler’s leadership, due to the previous statement of the former banker, the legend of SEC and Ripple may have a negative impact on blockchain companies.
In a speech at the 2018 MIT conference, Gensler said that XRP was classified as a security “strong reason.” In fact, Wall Street veterans claim that Ripple “has done a lot of work to increase the value of XRP.”
On January 7, Ripple CEO Brad Garlinghouse (Brad Garlinghouse) answered some of the SEC’s allegations. At the time, he said the company would submit its preliminary legal response “within a few weeks.”
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