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US President-elect Joe Biden is expected to appoint 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 U.S. Commission on Futures Trading (CFTC) from 2009 to 2014.
The former banker joined Biden’s transition team in November
According to two unnamed Reuters sources, Biden has finally decided on his final choice to lead the SEC, after Jay Clayton stepped down as chairman in December. Gensler is a well-known figure in the crypto industry, especially in academia.
Under Trump’s administration, the former Goldman Sachs banker taught crypto assets and blockchain courses at MIT Sloan School of Management. Sources familiar with the matter told Reuters that Gensler could aim for “tighter regulations,” raising concerns among businesses on Wall Street.
If confirmed by the mostly Democratic-controlled Senate, Gensler would also lead the regulator’s fight against Ripple Inc.
The former banker also led Biden’s financial policy transition team in November. Such a fact increased the odds that the Wall Street veteran would likely be nominated to take on an SEC role.
Former SEC Chairman Jay Clayton, replaced by Elad Roisman, was known for the program to continue his initial coin offerings. During his tenure, the regulator also released a report stating that digital assets could be treated like securities.
How will the legal fight against Ripple be resolved with Gensler as president?
Under Gensler’s leadership, the SEC vs Ripple saga could negatively impact the blockchain firm due to the former banker’s previous statements.
In a speech at an MIT conference in 2018, Gensler said there is a “strong argument” for XRP to be classified as a stock. In fact, the Wall Street veteran claimed that Ripple “does a lot to increase 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 company would file its first legal response “within a few weeks”.
Do you agree with Gensler’s appointment as chairman of the SEC? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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