Gary Gensler Hints at SEC Resignation – Who’s Next In Line?
Qadir AK15 Nov 20242 min read
During a speech at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation in New York on Thursday, November 14, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler suggested he may soon step down. Speaking about cryptocurrencies, Gensler clarified that Bitcoin, Ethereum, and stablecoins are not classified as securities.
However, he reaffirmed that most other cryptocurrencies, including Ripple’s XRP, meet the criteria for securities under the Howey test.
“Our focus, rather, has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities. Putting this in context, aside from bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion. That’s less than 20 percent of the whole crypto market and less than one-quarter of one percent of the worldwide capital markets,”
Read on to explore the key takeaways from his speech.
The End of An Era!
To the crypto enthusiasts, the most intriguing part of Gensler’s speech was his conclusion, which hinted at the end of an era.
“It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world,” Gensler highlighted.
With pro-crypto U.S. leaders like President-elect Donald Trump set to take office, the SEC is expected to see new leadership more favorable to the crypto industry. Already, 18 U.S. states have filed a lawsuit against the SEC, accusing the agency under Gensler of exceeding its authority on crypto regulations.
Impact on the XRP Market
The XRP market has been hit hard the most by regulatory overreach by the US SEC. Despite the recent ruling that XRPs sold via crypto exchanges are not investment contracts, the U.S. SEC recently filed an appeal, thus further damaging the market.
However, Gensler’s impact on the XRP market is expected to end soon under Trump’s administration.
Despite the challenges, XRP has seen renewed bullish momentum, especially from whale investors who are driving up the price. Market data shows that XRP has surged by over 47% this week, reaching approximately $0.82 as of Friday during the early Asian session.
For XRP investors, the promise of a new regulatory approach could be the silver lining they’ve been waiting for.
