In a speech during the Practicing Law Institute and the 56th Annual Institute on Securities Regulation held in New York on Thursday, November 14, US SEC Chair Gary Gensler hinted he may be leaving the agency soon. In regards to the crypto market, Gensler highlighted that Bitcoin, Ethereum, and stablecoins are not securities.
However, the more than 10k altcoins, including Ripple’s XRP, Gensler reiterated that they are 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,” Gensler noted.
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.
Following the resounding victory of pro-crypto US leaders led by President-elect Donald Trump, the SEC is expected to have a new chairman soon, who is for the crypto market. Already, 18 US states have filed a lawsuit accusing the US SEC under chair Gensler of overstepping its mandate on crypto regulations.
Impact on the XRP Market
The XRP market has been the most hit hard by the regulatory overreach of 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.
Consequently, XRP price has registered significant bullish sentiment in the recent past fueled by whale investors. According to the latest market data, XRP price has surged over 47 percent this week to trade about 82 cents on Friday, during the earlier Asian session.
