The U.S. President-elect Joe Biden is set to name Gary Gensler as the new chairman of the U.S. Securities and Exchange Commission (SEC) to replace Elad Roisman. During Obamaâ€™s administration, Gensler led the U.S. Commodity Futures Trading Commission (CFTC) from 2009 to 2014.
The Former Banker Became Part of Bidenâ€™s Transition Team in November
According to Reutersâ€™ two unnamed sources, Biden has finally decided on his final pick to lead the SEC, following the stepping down of Jay Clayton as chairman in December. Gensler is a well-known figure in the crypto industry, specifically in the academic sphere.
During Trumpâ€™s administration, the former Goldman Sachs banker taught courses on crypto assets and blockchain at MIT Sloan School of Management. Sources familiar with the matter told Reuters that Gensler could aim for â€œtougher regulations,â€ raising concerns among Wall Street firms.
If confirmed by the Senate mostly controlled by Democrats, Gensler would also be leading the regulatorâ€™s fight against Ripple Inc.
The former banker also headed Bidenâ€™s financial policy transition team in November. Such fact increased the odds that the Wall Street veteran would be likely appointed to take an SEC role.
Former SEC Chairman Jay Clayton, replaced by Elad Roisman, was known for his initial coin offeringsâ€™ pursuing agenda. During his tenure, the regulator also released a report declaring digital assets could be treated as securities.
How Will the Legal Fight With Ripple Be Resolved With Gensler as Chairman?
Under the leadership of Gensler, the SEC vs. Ripple saga could have a negative impact for the blockchain firm due to the previous statements made by the former banker.
During a speech at an MIT conference in 2018, Gensler said there is a â€œstrong caseâ€ for XRP being classified as a security. In fact, the Wall Street veteran claimed that Ripple â€œis doing a lot to advance the value of XRP.â€
On Jan. 7, Ripple CEO Brad Garlinghouse addressed some of the allegations made by the SEC. At the time, he said that the firm would be filing its initial legal response â€œwithin weeks.â€
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