- US president Joe Biden selected SEC nominee, Gary Gensler, who appeared in a formal hearing in the US Congress
- Crypto markets show mild enthusiasm after the conclusion of the hearing
- Gensler lists the pros and cons surrounding the crypto dimension
In what can be constituted as a formality before his actual appointment as the Securities and Exchange Commission (SEC) head, Mr. Gary Gensler appeared in a formal hearing in the US Congress. Using it as a forum to put forth his thoughts about DeFi tokens, Gensler drew a list of the boons and the banes cryptos had to offer.
The right choice for the role
The new nominee has to his name exemplary skill sets which would make him the best suited for the role. By virtue of him being a renowned financial expert, he worked on the popular Dodd-Frank Act which helped to mold the crumbling US economic system after the financial crisis of 2008. He is also a well-known expert in cryptocurrencies currently probing its regulation from a legal stand-point. Apart from all these, he also teaches cryptos to the students of MIT.
The pros and cons
The appointment of Gary Gensler, a respected crypto supporter, is in itself a piece of good news for the markets. Moreover, in his statement, he acknowledged the fact that DeFi tokens have the effect of a catalyst on the economy, while also having the capability to bring about a paradigm shift in the way financial systems work in the future. He highlighted the fact that investors must be placed at the core of any new legislation on virtual tokens and it must be imperative that their sentiments be protected.
However, it is unlikely that he would take any radical steps as this is merely an intervening role. To ensure that the non-fiat currency system is free of manipulation and Fraud, he suggested that the SEC may play a more dynamic and proactive role while regulating the markets. These types of interventions may hurt some long-term investors in the future. Earlier, Mr. Gensler had also suggested that XRP and Ether were securities despite Ether not being decentralized enough to the point of becoming viable security. Ripple too is hotly contesting the nature of its native XRP as a security.
All these steps may be merely speculative in nature as the SEC will need the approval of the President to pass any new steps in this direction.