Gary Gensler will now advise the SEC in a time of crisis. Since it’s recent scandal with Ripple, the financial gatekeeper SEC has been under fire lately for not providing transparency regarding its authority over the cryptocurrency ecosystem. This follows Gensler’s predecessor Jay Clayton, an attorney elected under the Trump administration, filed a lawsuit against Ripple for allegedly concealing the security status of XRP.
Last month, during a hearing held by the Senate, Gensler stated that he was excited that Bitcoin and other cryptocurrencies have brought progressive thinking to payments and financial inclusion. The Goldman Sachs veteran added that this also raised new issues of investor protection that still needed to be looked into. Once a chairman of the Commodities and Futures Commission under Barack Obama’s presidency, Gary Gensler seems like the change the crypto world needs in order to advocate progressive ideas.
Yesterday, Ripple co-founders Brad Garlinghouse and Chris Larsen filed twin motions to dismiss the case against them in court. This comes after a string of wins for the defendants. A significant win for the cryptocurrency firm was determined by US Magistrate Judge Sarah Netburn, who ruled in favor of granting Ripple Labs access to the SEC internal discussions over cryptocurrencies.
In an interview, Ripple CEO Brad Garlinghouse said he was hopeful with the election of the MIT professor. “There’s an opportunity to have a conversation with that new leadership as he brings his team in”. Ripple hopes clearer regulatory policies for crypto with Gary Gensler as chair will allow for a re-evaluation of the $1.3 billion lawsuit against them.
Gensler will have ample opportunity to shape regulations addressing the cryptocurrency industry which could be key in determining how existing regulations should be applied. Meanwhile, as the SEC grapples with the high-profile lawsuit against Ripple, it will be interesting to watch Gensler’s first order of business.
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