The U.S. Senate has voted to approve Gary Gensler's nomination, with 53 affirmative votes: 45 negative votes. This means that he will be sworn in as the 33rd chairman of the US Securities and Exchange Commission (SEC).
Gary Gensler served as the 11th Chairman of the Commodity Futures Trading Commission under Obama from May 26, 2009 to January 3, 2014. Previously served as the Deputy Minister of Domestic Finance (1999-2001) of the Ministry of Finance and the Assistant Minister of Financial Markets (1997-1999) of the Ministry of Finance. Before serving in the federal government, Gensler worked at Goldman Sachs as a partner and co-head of the finance department. Gensler also served as the chief financial officer of Hillary Clinton's 2016 presidential campaign and was nominated by Biden this year as the 33rd chairman of the US Securities and Exchange Commission. Gary Gensler was also a professor of global economics and management practice at the MIT Sloan School of Management. He has also conducted research and teaching on blockchain technology, digital currency, financial technology, and public policy.
Gensler said at the Senate Banking Committee confirmation hearing held earlier this month: “Bitcoin and other cryptocurrencies have brought new ideas to payments and financial inclusion, but they also raise new investor protection issues that we still need to pay attention to. If my nomination is confirmed, I will work with other specialists to promote new innovations.” Gensler promises to promote technological development, but the core value is still to protect investors and capital markets. The appointment of Gray Gensler is likely to bring answers to three questions that have been hotly discussed in the encryption circle.
1. SEC v. Ripple
This case has always been paid attention to by the crypto circle, and it can be regarded as a classic case of encryption compliance issues. Although good news about Ripple has been frequently released recently, as long as the lawsuit continues, Ripple will always be under its negative influence and it is difficult to be seen by the public. accept. Thomas Hodge, the founder of Crypto&Policy, created the Change.org petition, urging Gary Gensler to abandon the heavy litigation against Ripple. The petition states: “After Gary Gensler assumes the chairmanship of the SEC, we request that you carefully investigate the SEC’s allegations against Ripple Labs and its co-founders and end the lawsuit. The SEC’s actions have (unnecessarily) caused XRP holders We request that together with American cryptocurrency and blockchain developers and digital asset holders, a clear regulatory framework for everyone involved should be developed, which is meaningful and protects innovation while fighting fraud and crime. We We are all ready to work with you.” The current position of Gary Gensler will bring a new direction for Ripple and the entire crypto market.
2. US Crypto ETF Application
In March, according to a public Form S-1 document issued by the US Securities and Exchange Commission (SEC), asset management giant Fidelity is seeking to establish a Bitcoin exchange-traded fund (ETF), which is named WISE ORIGIN BITCOIN TRUST. Skybridge Capital also submitted an application for a Bitcoin ETF. In January of this year, alternative asset management company Valkyrie applied for its own Bitcoin ETF. Many companies are reluctant to give up this market easily. The SEC rejected all past applications, and Gary Gensler has always been known for his open attitude on digital asset issues, so whether encrypted ETFs can be successfully born on the fertile soil of the United States is still worth looking forward to.
3. New Encryption Compliance Act
Prior to this, One River Asset Management recently announced that Jay Clayton, the former chairman of the US Securities and Exchange Commission (SEC), will provide the company with cryptocurrency advice. In order to comply with regulations, the major companies can be said to be struggling. BitMEX is a lesson from the past, a smashing exchange. Last year, its senior executives were accused of violating anti-money laundering regulations by the US CFTC, and their vitality has since been greatly injured. Although BitMEX has also made recent efforts to improve compliance, such as hiring a former PricewaterhouseCoopers partner as the chief financial officer, it was only a remedy in the end. In early March, Binance was also investigated by the CFTC because of concerns that Americans would buy non-compliant futures and other crypto derivatives on the Binance platform. The investigation is still in the confidential stage, and the investigation may not be upgraded to further enforcement actions for the time being. Faced with these questions, Hester Peirce, known as the "mother of encryption," also believes that Gary Gensler may be the one who can give the answer. Hester Peirce stated in the MarketWatch virtual panel meeting that the United States still lags behind other countries in the world in terms of digital asset supervision. But if Gary Gensler, who is proficient in encryption, becomes chairman of the US Securities and Exchange Commission, things are expected to move in the right direction.
But after all, all this is just a hypothesis. Whether Gary Gensler will give an answer as everyone wants, we can only wait and see. But what is certain is that the encryption wave is no longer what an institution, an organization, or even a country can stop or stifle. Since it cannot be stopped, you should choose to hug, which may be the correct answer.
