Biden Set To Name Gary Gensler As New SEC Chairman
In a news report gathered from various media entities across the United States, Gary Gensler is in line to survive Jay Clayton as the SEC chairman. Gensler is a democrat who had served the U.S. government in several capacities and was notably remembered for his service to former President Barack Obama when he was the Commodity Futures Trading Commission head.
The Professor of the Practice of Global Economics and Management, who currently leads the Biden-Harris transition agency review team, was then known for his rigorous approach to enacting government regulations.
Gensler will be tougher than Jay Clayton
The news of Gensler heading the SEC was rumouredly reported last November when the former Chairman of the CFTC for five years was appointed to lead Biden’s new plans for financial transition in the country. The appointment of Gensler as the head of a financial regulatory body is set to bring an end to the rumored disastrous reign of Jay Clayton.
While at CFTC, Gensler enacted dramatic trading rules that put Wall Street banks, brokers, funds, and public companies on their toes. The Professor at MIT Sloan School of Management, to a list of his achievement, led the effort to pass and implement a comprehensive oversight of the $400 trillion swap market that led to the country’s financial crisis in 2008.
As of the time of writing, Gensler and his spokesperson have not yet responded to the new development and appointment questions. The significance of Gary Gensler’s appointment as the SEC Chairman has been weighed by all, including analyst who believes that the former Goldman Sachs banker could mean well for the Blockchain ecosystem.
What does it mean for cryptocurrency?
In 2018, Gensler told Bloomberg that he sees cryptocurrencies like Ether and XRP as securities and that the government officials should look at it as the tokens both meet the requirement of the Howey test. The Howey Test, a test created by the Supreme Court to ascertain whether some transactions qualify as investment contracts, has been preferred recently ahead of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Last December, the U.S. Securities and Exchange Commission (SEC) have submitted a lawsuit against cryptocurrency firm Ripple, in which it accused the company of unregistered offering of securities. Ripple, the parent company of the XRP token, had been adversely affected by the ruling of the court in favor of the SEC. Many exchanges have either delisted XRP or have plans to do so soon.
The stepping down of Jay Clayton did not also aid Ripple’s cause, as the price of XRP has taken a downward spiral since the ruling. However, the cryptocurrency community’s expectations and the investors of XRP is that Gensler’s reign may positively impact the future of Ripple and the cryptocurrency world at large.