United States President-elect Joe Biden is expected to appoint Gary Gensler as the new chairman of the United States Securities and Exchange Commission (SEC) to replace Elad Roisman. During the Obama 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 two unnamed Reuters sources, Biden has finally decided on his final choice to lead the SEC, following Jay Clayton’s resignation as president in December. Gensler is a well-known figure in the crypto industry, specifically in the academic sphere.
During the Trump administration, the former Goldman Sachs banker taught courses on crypto and blockchain assets at the MIT Sloan School of Management. Sources familiar with the matter told Reuters that Gensler could aim for “stricter regulations”, raising concerns among Wall Street companies.
If confirmed by the Senate controlled mainly by Democrats, Gensler would also lead the regulator’s fight against Ripple Inc.
The former banker also led the Biden financial policy transition team in November. That fact increased the chances that the Wall Street veteran was likely to be appointed to the SEC.
Former SEC Chairman Jay Clayton, replaced by Elad Roisman, was known for his initial coin offering schedule. During his tenure, the regulator also released a report stating that digital assets can be treated as securities.
How will the legal dispute with Ripple be resolved with Gensler as president?
Under the leadership of Gensler, the SEC vs. Saga Ripple may have a negative impact for the blockchain company due to previous statements made by the former banker.
During a speech at a 2018 MIT conference, Gensler said there is a “strong case” for XRP to be classified as a title. In fact, the Wall Street veteran said Ripple “is doing a lot to increase the value of XRP”.
On January 7, Ripple’s CEO Brad Garlinghouse addressed some of the claims made by the SEC. At the time, he said the company would submit its initial legal response “within weeks”.
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