Following the U.S. President-elect Joe Biden pronouncement that Gary Gensler is the new chairman of the U.S. Securities and Exchange Commission (SEC), the value of Bitcoin has risen to near 40,000 after it fell a few days ago.
Gensler who is a well-known figure in the crypto industry, specifically in the academic sphere has been pencilled down to replace Elad Roisman.
Recall that during Obama’s administration, Gensler led the U.S. Commodity Futures Trading Commission (CFTC) from 2009 to 2014.
According to Reuters’ 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.
During Trump’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 “tougher regulations,” raising concerns among Wall Street firms.
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If confirmed by the Senate mostly controlled by Democrats, Gensler would also be leading the regulator’s fight against Ripple Inc.
The former banker also headed Biden’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 offerings’ pursuing agenda. During his tenure, the regulator also released a report declaring digital assets could be treated as securities.
Under the leadership of Gensler, the SEC vs. Ripple saga could have a negative impact on 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 “strong case” for XRP being classified as a security. In fact, the Wall Street veteran claimed that Ripple “is doing a lot to advance the value of XRP.”
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 “within weeks.”
Bitcoin.com