76 total views
Biden will appoint former CFTC chairman and encryption expert Gary Gensler as SEC chairman. Will this bring a turn for Ripple?
Original title: “Ripple welcomes a turn for the better when the new SEC official takes office? 》
Today, Ripple CEO Brada Garlinghouse (Brada ac Garlinghouse) tweeted: “Congratulations Gary Gensler! We are ready to work with the SEC leadership and the wider Biden administration to contribute to U.S. blockchain and encryption technology. Innovate and standardize the road.”
Earlier news said that Biden will appoint former U.S. Commodity Futures Trading Commission (CFTC) chairman and encryption expert Gary Gensler (Gary Gensler) as the chairman of the SEC. Will this bring opportunities for Ripple?
New SEC Chairman: Encryption needs regulation
On January 19th, US time, US President-elect Biden confirmed that Gensler was appointed as the new SEC chairman.
After Jay Clayton, who has been the chairman of the SEC since May 2017, resigns on December 23, Elad Roisman will be the acting chairman, and Gensler will succeed Roysman becomes the official SEC chairman.
Gensler worked at Goldman Sachs for nearly 20 years in the 1980s and 1990s before joining the Clinton administration as Assistant Secretary of the Treasury. He later became an important financial regulator for former President Barack Obama.
Gensler served as chairman of the CFTC from 2009 to 2014, and in 2010 he took the lead in passing the Dodd-Frank Act to prevent another financial crisis.
In recent months, Gensler has advocated nationwide regulation of the encryption industry.
Gensler said in an interview with Bloomberg in 2018: “If we really think that the crypto world will become part of the future, then it must be included in the scope of public policy.” Gensler believes that this means preventing illegal activities and protecting investors. , Crypto exchanges such as Coinbase, etc., need to be included in the supervision of the SEC or CFTC.
In 2018, Gensler also taught a course on how Bitcoin and blockchain are used in the financial sector at the Massachusetts Institute of Technology (MIT), including payment systems, central banks, secondary market transactions, venture capital, commercial banks, The content of trade finance and other aspects mainly explores the market and supervision of tokens and their derivatives. In an article he wrote for Coindesk, he described cryptocurrency as a “catalyst of change.”
“Shared blockchain applications may help launch multi-party network solutions in areas that have been fragmented or difficult to change in history. As an innovative stimulus for existing and traditional technologies, cryptocurrency and blockchain technology have already promoted Has made real changes and will continue to do so,” he wrote in 2019.
“Securities” label is difficult to remove
At the end of this month, Marc Berger, the acting executive director who led the lawsuit against Telegram ICO and the unregistered securities litigation against Ripple Labs, will resign at the end of this month. To be sure, the SEC’s lawsuit against Ripple will continue under Gensler’s leadership.
In the MIT course, Gensler stated that based on the Howey test, XRP tokens “are a non-compliant security”, that is, Ripple sells XRP, and Ripple is an ordinary enterprise. Without Ripple, XRP would have little use.
According to the SEC allegations, Ripple began to raise funds in 2013 by selling digital assets called XRP to investors in the United States and around the world. Ripple also distributed billions of Ripple coins in exchange for non-cash considerations such as labor and market-making services. According to the complaint, in addition to organizing and promoting the sales of Ripple coins used to fund the company’s business, Ripple leaders also conducted unregistered personal sales of XRP, totaling approximately $600 million, which did not meet any exemption registration and violated the registration of the Federal Securities Law Regulations.
In 2018, Gensler publicly stated that “there are good reasons to believe that Ripple is a security”. Although it is friendly to encryption, if Gensler still insists on this point of view, the result of Ripple is unknown.
In addition to pinning its hopes on Gensler, Ripple is also trying to show its advantages in order to “save the country by curve”.
Stuart Alderoty, Ripple’s general counsel, once stated that the SEC recognizes XRP as a driving force for cross-border payments. “The SEC recognizes that our client actually converted fiat currency to XRP, then transferred XRP to the recipient’s jurisdiction, and finally converted XRP to fiat currency in that region, it took approximately 90 seconds or less.
Ripple Chief Technology Officer David Schwartz recently shared a new feature on the XRP ledger, namely how to help institutions issue stablecoins backed by deposits. Schwartz said that financial institutions can use the XRP ledger to issue their own stablecoins, and a new platform called “Issued Currencies” can help them do this. The platform can be used to issue and manage any digital assets, as well as the aforementioned stable coins.
According to Ripple’s job postings, it has cooperated with many central banks around the world to test the digital central bank currency (CBDC) on XRPL. It is expected that the central bank’s technology partner manager will lead and supervise the implementation of the CBDC project.
Earlier, Ripple recently released a report on the evolution of central bank digital currencies (CBDC), believing that XRP can provide support for the stablecoins issued by these banks as their bridge currency.
It is reported that for the US Securities and Exchange Commission’s lawsuit against Ripple, the Southern District Court of New York has set the court date of the case as February 22, 2021.
Disclaimer: As a blockchain information platform, articles published on this site only represent the author’s personal views, and have nothing to do with ChainNews’ position. The information, opinions, etc. in the article are for reference only, and are not intended as or regarded as actual investment advice.