US President-elect Joe Biden will appoint Gary Gensler as the new chair of the US Securities and Exchange Commission (SEC) to replace Elad Roisman. During the Obama administration, Gensler led the US Commodity Futures Trading Commission (CFTC) from 2009 to 2014.
The former banker joined Biden’s Transition Team in November
According to Reuters’ two unnamed sources, Biden has finally done it certainly on his latest choice to lead the SEC following Jay Clayton’s resignation as chairman in December. Gensler is a well-known figure in the crypto industry, especially academically.
During the Trump administration, former banker Goldman Sachs taught courses on crypto assets and blockchain at MIT Sloan School of Management. Sources familiar with the case told Reuters that Gensler could be pushing for “tougher regulations,” raising concerns from Wall Street companies.
If affirmed by the Senate, which is largely controlled by Democrats, Gensler could also fight the regulator’s fight against Ripple Inc.
The former banker also headed Biden’s transition team in November. Such a fact increased the odds that the Wall Street veteran would likely be hired to take on an SEC role.
Former SEC Chairman Jay Clayton, to replace by Elad Roisman, was known for pursuing the agenda of its initial coin offering. During his tenure, the regulator also released a report stating that digital assets could be treated as securities.
How will the legal battle with Ripple be resolved with Gensler as chairman?
Led by Gensler, the SEC vs. Ripple saga could have a negative impact on the blockchain company due to the former banker’s earlier statements.
Gensler spoke during a speech at an MIT conference in 2018 said there is a “strong case” for it XRP classified as a security. In fact, the Wall Street veteran claimed that Ripple “is doing a lot for the value of XRP. “
On January 7, CEO of Ripple, Brad Garlinghouse addressed some of the SEC’s allegations. At the time, he said the company would file its initial legal response “within weeks.”
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