According to the Reuters report, two unnamed sources have revealed that U.S. President-elect Joe Biden has finally decided on his final pick to lead the SEC, following the stepping down of Jay Clayton as chairman in December. Gensler is a well-known figure in the crypto industry, specifically in the academic sphere. The former Goldman Sachs banker taught courses on crypto assets and blockchain at MIT Sloan School of Management during the Trump administration.
Gensler could aim for “tougher regulations.”
Sources familiar with the matter told Reuters that Gensler could aim for “tougher regulations,” raising concerns among Wall Street firms. If confirmed by the Senate mostly controlled by Democrats, Gensler would also be leading the regulator’s fight against Ripple Inc. The former banker also headed Joe Biden’s financial policy transition team in November. Such fact increased the odds that the Wall Street veteran would be likely appointed to take the SEC chairman role. The former SEC Chairman Jay Clayton, replaced by Elad Roisman, was known for his initial coin offerings’ pursuing agenda.
U.S. regulators continue to work out new crypto regulations.
Later last year, the U.S. Financial Crimes Enforcement Network (FinCEN) had proposed a rule that would instill record keeping and reporting requirements for transactions by or to a bank or money service business involving an “unhosted or otherwise covered wallet. The proposed rule, entitled “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets,” would subject self-hosted wallets to heightened anti-money laundering standards if enacted, meaning anonymous transacting could become a thing of the past. However, many from the crypto community believe that the new administration would favor the crypto industry. The CEO of the digital currency company Circle, Jeremy Allaire, said he is confident that the incoming Biden administration will support cryptocurrencies.