Why Is The New SEC Chairman Gary Gensler Important to Cryptocurrencies?
Gary Gensler, nominated by US President Joe Biden as leader of the Securities and Exchange Commission (SEC), was approved by the Senate this week with 53-45 votes. The new president of the SEC’s adoption of more positive views for cryptocurrencies is considered as a signal that a new era may begin for the crypto ecosystem.
Gens and Cryptos
Gensler’s agenda is quite intense and part of this agenda is cryptocurrencies. Whether the lawsuit between the SEC and Ripple, the pending ETF applications and the new decisions to be taken regarding cryptocurrencies, it is curiously expected how Gensler will take steps on behalf of cryptocurrencies.
On the other hand, Gensler said in his nomination speech before the Senate Banking Committee on March 2, “Bitcoin and other cryptocurrencies have brought a new perspective to payments and financial participation. However, they have also raised new investor protection issues that we need to deal with. It is important for the SEC to provide guidance and clarity. Sometimes this is a clarity that will be appreciated, but it is important to achieve it even if it is not liked very much. ” he used his words.
Industry watchers say Gary Gensler ‘s background and past performance show that he will bring high enforcement and regulation to the SEC. Gensler was chairman of the Commodity Futures Trading Commission from 2009 to 2014. At the CFTC, he led the passage of the Dodd-Frank Wall Street Reform and the Consumer Protection Act, created in 2010 to prevent another financial crisis.
Hester Peirce , a member of the SEC Commission and known as the “Crypto Mom” in the crypto industry , stated that a new president has come to the SEC with the new agenda and the timing of this is perfect.
In addition to all these , Gensler, who teaches and researches Blockchain and crypto money policy as a professor at the Massachusetts Institute of Technology , is an expert in Blockchain technology and calls this new technology “catalyst of change”.
Ripple Case and Bitcoin ETFs
Gensler’s presidency could reshape the SEC’s stance against cryptocurrencies. The SEC does not view Bitcoin as a security subject to SEC’s regulatory oversight, but some other crypto assets are subject to legal action by the SEC.
The SEC is currently in a legal battle with San Francisco-based Ripple Labs , a blockchain payment platform . The outcome of the SEC’s lawsuit against Ripple and the determination of the status of XRP are being closely watched by both industry leaders and investors due to its potentially far-reaching implications for the cryptocurrency industry.
On the other hand , various applications are also awaiting SEC approval to launch Bitcoin exchange traded funds . The growing list includes Fidelity’s Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, First Trust SkyBridge Bitcoin ETF Trust, VanEck Bitcoin Trust, Valkyrie Bitcoin Fund and NYDIG Bitcoin ETF.