Gensler, Known for His Tough Stance on Cryptos, Gives Signs of Departing SEC
Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler defended the agency's strict oversight policy toward the crypto sector in statements made on Thursday. In a speech at a law school, Gensler hinted that he would leave the SEC at the end of his term.
The victory of President-elect Donald Trump in the November 5 elections suggests that Gensler's future at the agency may be limited. Although it may not be legally possible for Trump to remove Gensler as promised, it is believed that he could fill the position with a new chairman.
Gensler stated that it is an honor to work with SEC employees and to protect capital markets for the benefit of the public. Appointed by former President Joe Biden in 2021, Gensler is known for the roadmap that sparked debates in the crypto industry. During his tenure, a significant portion of the SEC's enforcement actions related to cryptocurrency was taken under his leadership.
Gensler stood out with his enforcement in the crypto sector. An analysis by crypto venture capital firm Paradigm shows that more than half of the SEC's enforcement actions related to crypto occurred during Gensler’s tenure. Gensler expressed that the vast majority of crypto assets fall under the category of securities. This stance provoked reactions among crypto executives and investors, with critics arguing that Gensler used coercive methods to regulate the crypto market.
Donald Trump targeted the crypto sector by promising to remove Gensler on his first day in office. In defense, Gensler noted that the courts supported the SEC's decisions. He clarified that he was not targeting crypto directly, but rather focusing on digital assets considered securities.
Is the increase in XRP’s value related to Gensler? Ripple's XRP token gained value following Gensler's implied resignation. The value of XRP rose by 20%, reaching $0.83. XRP is known for its legal disputes with the SEC under Gensler’s leadership. If there were to be a change in the SEC chair, a new phase in the prolonged legal battle with Ripple Labs is expected.
Ripple is among the strong players in the crypto market. The crypto community anticipates that President-elect Trump will fulfill his promise and remove the SEC Chairman. Reports indicate that Trump's transition team is interviewing candidates who embrace a crypto-friendly approach. It is suggested that if Gensler were to step down, the trajectory of SEC's lawsuits against crypto firms could change.
Ripple announces that stablecoin RLUSD is ready. Ripple President Monica Long announced that RLUSD is operationally ready. Long indicated that RLUSD would serve as a complementary role to XRP and provide more transaction options. She expressed that RLUSD would be a sustainable solution against the fluctuations in the crypto market.
Ripple aims to promote wider adoption of cryptocurrencies with the integration of RLUSD. The stablecoin will offer new use cases for developers and contribute to DeFi projects. Ripple plans to bolster RLUSD to meet market demand, with a goal of maintaining its leadership position in the stablecoin market in the long term.