In quite a welcome move for the crypto industry, SEC Chairman nominee Gary Gensler recently responded to questions about blockchain, crypto, and Bitcoin, in a positive manner. Speaking at the nomination hearing, Gensler sounded very much positive about Bitcoin and crypto innovation in general.
Speaking before the Senate Banking Committee, Gensler called Bitcoin “a catalyst for change”. He further added:
“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.”
SEC Chair nominee, Gary Gensler:
"#Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they've also raised new issues of investor protection… If confirmed at the SEC, I will work to promote innovation" pic.twitter.com/AlAsUPJONY
— Bloqport (@Bloqport) March 2, 2021
However, Gensler noted that the SEC will take every measure to make crypto markets free from fraud. He added:
The SEC must ensure that the crypto market “are free of fraud and manipulation, and I think that’s the greater challenge, frankly, because some markets, usually operating overseas, have been rife with fraud”.
There’s not much movement though in Bitcoin (BTC) price as it continues to hold above $49,000 as of press time.
Will Gensler’s Nomination Fuel Chances of Bitcoin ETF?
With Bitcoin (BTC) hitting new highs, financial institutions are now gearing up for having Bitcoin ETF-like products in the market. Canadian regulators have already approved two Bitcoin ETFs last month which received a strong response from investors.
While the North American market has already got its first ETF, all eyes are on the U.S. and the SEC Chair nominee Gary Gensler. His pro-Bitcoin pro-innovation stand is giving hopes to the industry that the U.S. finally might have a Bitcoin ETF this year after dozens of rejections. CBOE and NYDIG are the recent applicants in 2021.
Galaxy Digital Chairman & Wall Street Mike Novogratz is optimistic about Gensler’s appointment. Working with him in the past, Novogratz believes that Gary is “tough but fair”. The Bitcoin community is particularly excited about Gensler’s appointment and even more with the higher chances of Bitcoin ETF. This is because it will further propel higher institutional participation in the market.
Not only the Bitcoin community but even Ripple (XRP) supporters are positive about the new SEC Chair. Looking at their hostile relations with the previous chairman Jay Clayton, Ripple is now working to build a healthy relationship with the new SEC chair.