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 Obama’s administration, Gensler led the U.S. 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 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 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.
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.
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 “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.”
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