US President-elect Joe Biden has named Gary Gensler as the new chairman of the US Securities and Exchange Commission (SEC) to replace Elad Roisman. Under Obama’s administration, Gensler headed the US Commodity Futures Trading Commission (CFTC) from 2009 to 2014.
The former banker became part of Biden’s transition team in November
According to Reuters’ two unnamed sources, Biden has finally decided on his final choice to head the SEC following Jay’s dismissal as chairman in December. Gensler is a well-known figure in the crypto industry, especially in the academic sphere.
Under the Trump administration, the former Goldman Sachs banker taught courses on cryptocurrencies and blockchain at the MIT Sloan School of Management. Sources familiar with the matter told Reuters that Gensler could aim for “stricter rules,” raising concerns among Wall Street companies.
If Gensler confirms it by the Senate, which is mostly controlled by Democrats, it would also be leading the regulator’s fight against Ripple Inc.
The former banker also led Biden’s fiscal transition team in November. Such a fact increased the odds that the Wall Street veteran would likely be appointed to take on an SEC role.
Former SEC Chairman Jay Clayton, replaced by Elad Roisman, was known for his original coin offering’s pursuing agenda. During its time, the regulator also released a report stating that digital assets could be treated as securities.
How to resolve the legal battle of ripple with Gensler as chairman?
Under the leadership of Gensler, the SEC vs. The Ripple saga have a negative impact on the blockchain company due to the earlier statements of the former banker.
Speaking at a 2018 MIT conference, Gensler said there is a “strong case” for XRP to be classified as security. In fact, the Wall Street veteran claimed that Ripple “does a lot to promote the value of XRP.”
On January 7, Ripple CEO Brad Garlinghouse addressed some of the allegations made by the SEC. At the time, he said the firm would file its original legal response “within a few weeks.”
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