The Crypto X is reacting to an update from the Washington Reporter featuring Vice President Kamala Harris and Gary Gensler.
The report noted that VP Harris might appoint the Securities and Exchange Commission (SEC) Chairman as the Treasury Secretary. This is a very important role in the US Government that might further strain the relationship with the crypto industry.
Gary Gensler and the Crypto Industry
Gary Gensler has a somewhat dynamic relationship with the digital currency ecosystem. He once taught blockchain at the Massachusetts Institute of Technology (MIT), making him a regulator with industry knowledge.
However, he has a relatively bad history with crypto ecosystem leaders and members. Under his watch, many crypto industry firms have suffered lawsuits, with some cases still in court. While former SEC Chair Jay Clayton filed the long-drawn lawsuit against Ripple Labs Inc., Gary Gensler handled most of the fallout.
Market leaders believed the SEC Chair could have closed the case before it escalated. However, he has led lawsuits against Binance and Coinbase Exchanges in the United States. Beyond these, he has filed a Wells Notice against firms like Uniswap Labs, which does not rule out future lawsuits.
Industry leaders have slammed the regulation imposed by the regulatory boss. Firms like Coinbase are locked up in a suit seeking the SEC to provide clear regulator guidelines for the industry.
Is Gary Gensler Perfect for Treasury Secretary
Becoming the Treasury Secretary will give the SEC Chair more regulatory power over the crypto industry. Although the different arms of the government work together, the limited appreciation for Bitcoin might lead to more crackdowns.
Thus far this election season, VP Kamala Harris and the DNC have yet to prove they will pay attention to crypto. This is a positive insulation for any harsh regulatory actions the different bodies might introduce.
The tide is shifting significantly regarding the Court and US Lawmakers’ disposition to Gary Gensler’s regulatory approach. For instance, both entities had a split victory in the Ripple versus SEC legal battle. While Judge Analisa Torres fined Ripple $125 million for selling XRP as security to institutional investors, the court ruled that XRP is not an investment contract when traded on exchanges.
This gave a major precedence to other related assets in the industry. However, this clarity may shift if Gary Gensler and the SEC file an appeal. As the Treasury Sec, the regulator may push subordinate bodies like FinCEN to go all out on crypto.
The Unexpected Exception
Despite the strain the industry has experienced from the SEC’s regulatory approach, some recent events shocked the market.
Spot Bitcoin ETF products went live in January, ushering in a new era for the crypto ecosystem. Despite the uncertainty surrounding Ethereum as an asset class, the SECÂ approved the spot Ether ETF bid. While the coming election might have influenced this move, it is shocking to the digital currency ecosystem.
With these shifts, there is growing speculation that more Crypto ETF products might soon grace the US market.
