Gary Gensler has already officially headed the SEC, the equivalent of our KNF in the US. He will therefore play a key role in overseeing the US financial services sector by the Joe Biden administration. What does this mean for cryptocurrencies?
Gary Gensler headed the SEC
It is worth recalling that previously Gensler was the head of the Commodity and Futures Trading Committee. It happened during the presidency of Barack Obama. Now he headed the SEC, i.e. he will supervise the cryptocurrency market. At least in part.
Gensler has shown many times that he understands blockchain technology. In his opinion, this type of “innovation is a catalyst for change. Bitcoin and other cryptocurrencies have brought new thinking to payments and financial integration, but also raised new investor protection issues that we still need to address. “
It is worth adding that he is a professor at MIT, which emphasizes his passion for technological innovations. That’s good for Bitcoin. However, there is also the other side of the coin.
War on top
Gensler will certainly be able to count on collaboration with SEC commissioner Hester Peirce, who advocated a more liberal US regulatory stance on digital assets.
– I look forward to working with President Gensler on many of the issues facing the Commission, including on cryptocurrencies. Hopefully it will see the need to foster innovation and provide more regulatory certainty in the field of cryptocurrencies – she said The Block.
It is possible that this duo will improve the legislative situation of cryptocurrencies and tokens in the US.
The problem, however, may be that the head of the SEC is not omnipotent. Washington is full of lobbyists and various business and political parties. Some of them may not necessarily be Bitcoin friendly. Remember that Janet Yellen has recently become the US Treasury Secretary, for whom cryptocurrencies are mainly tools of criminals and terrorists. It is possible that between the two personalities – Yellen and Gensler – there will even be competition over how to regulate the new market.
Gensler also does not intend to change the SEC position in relation to, for example, the ICO. He referred to this topic in lectures at MIT in 2018, saying that he considered XRP to be the type of action issued by Ripple. The latter company has legal problems on this basis. It is accused that XRP only “plays” the token, although it is a share, ie a security.
In short: Gensler’s person is a light in the tunnel for the US cryptocurrency market. But there are still a lot of threats lurking nearby that can put them out.