Gary Gensler, the Joe Biden nominee for SEC chief is all set to appear before the Senate for the confirmation hearing today. Gensler who earlier headed the CFTC is a known crypto advocate and thus many in the crypto community are hopeful of a positive regulatory approach from the new SEC chief.
Excerpt from SEC Chair nominee Gary Gensler's nomination hearing testimony before the Senate Banking Committee tomorrow: "Markets—and technology—are always changing. Our rules have to change along with them…"
— Michelle Bond (@michellebond111) March 1, 2021
Gensler in his opening testimony to the Senate Banking Committee talked about changing financial ecosystems and how regulatory policies need to be prioritized based on these changes.
The excerpt from the testimony read,
Markets—and technology—are always changing. Our rules have to change along with them. In my current role as a professor at MIT, I research and teach on the intersection of technology and finance. I believe financial technology can be a powerful force for good—but only if we continue to harness the core values of the SEC in service of investors, issuers, and the public.
As a professor, Gensler taught blockchain technology and its use cases in the future of finance, this has brought strong support for the former chair of CFTC given most of the policymakers seem clueless about decentralized tech and Bitcoin in particular. Gensler’s appointment comes as a great relief for many crypto proponents who believe the new SEC chairman nominee would support better regulations and his understanding of the subject would really bring significant changes in the way the regulatory body views digital assets.
What Does Gensler’s Appointment Mean For Ripple?
Gensler’s appointment as the SEC chief is being perceived as positive news by most of the crypto community, however, the biggest talking point is the ongoing SEC lawsuit against Ripple and two of its executives and the possible impact of a new chairman on the case.
Gensler has reportedly called XRP security during his MIT class back in 2018. Whether his past opinion would impact the ongoing lawsuit is to be seen, but going by the merits of the case Ripple might get away with a fine especially after SEC made significant amendments to the court filing right before the first scheduled hearing in the case.
Many also expect Gensler’s tenure would approve the first Bitcoin ETF in the US, as every ETF application was rejected by former SEC chair Jay Clayton.