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- Reports have emerged that current SEC Chair Gary Gensler might be leaving the regulatory agency and is set to be replaced by Commissioner Hester M. Peirce.
- Peirce’s nickname as ‘Crypto Mom’ demonstrates how she is widely celebrated in the crypto community.
Rumors of Gary Gensler leaving the U.S. Securities and Exchange Commission (SEC) are swirling once again in the crypto community. The chairman who has been serving in the agency since 2021 was earlier this year rumored to be stepping down following pressure from lawmakers who expressed disappointment in his work.
Just a few weeks ago, he and the agency took a big hit with the loss of the Ripple case. After more than two years in court with Ripple over the alleged sales of unregistered securities in the form of XRP tokens, the judge ruled XRP not to be a security.
The agency has since sued Binance and Coinbase, two of the largest crypto exchanges in the world. Both have been accused of selling unregistered securities while Binance and its CEO Changpeng Zhao stand accused of manipulating investors and misusing customer funds.
Furthermore, several legislators have highlighted the agency’s failure to protect investors in a number of high-profile cases most notably the collapse of the FTX crypto exchange. In this case, not only did the agency not fail to identify the problems at the company but was in fact working with its CEO in crypto regulation.
The chair has also stubbornly failed to approve a Bitcoin spot ETF despite the industry going mainstream and the entry of institutional investors and companies such as BlackRock. Again, a demonstration of a lack of understanding or disregard of the industry.
Most in the crypto industry have accused the agency of regulating the crypto market by enforcement, an approach that has slowed its growth and development.
Political Change to Affect SEC Chair Appointment
With the upcoming 2024 presidential elections, crypto is set to play a major role. Presidential candidates’ stance on the growing industry is set to impact their popularity. Presidential aspirant Robert F. Kennedy is the favorite in the crypto community after declaring his support for Bitcoin. On top of confirming he owns Bitcoin, Kennedy has gone as far as saying he plans to back the U.S. dollar with Bitcoin.
Former President Donald Trump who is running for the 2024 election is another of key interest. Despite stating he does not support crypto, filings have recently revealed he owns between $250K and $500K in digital assets.
Republican Presidential hopeful DeSantis has accused Biden of ‘war on Bitcoin’ and pledged to defend crypto if elected.
More interestingly, the current president, Joe Biden, has recently released a promotional video in which he is drinking from a cup with his face which has laser eyes.
Bitcoin proponents are speculating that the laser eyes might be a reference to a long-standing “bullish Bitcoin trend”, where investors and key figures added laser eyes to their profile pictures. The “laser eyes” trend was introduced back in 2021 when key figures collectively sought to trigger a bull rally. The goal was for Bitcoin to tap $100,000. This video could be a way for Biden to seek support in the crypto community.
Read More: Is Joe Biden a Bitcoin Maxi? U.S. President Unknowingly Promotes BTC
Political analysts expect the presidential seat to go to the Republican party which is largely pro-crypto. With this change, it is inevitable that this will lead to a change at the helm of the SEC. One of those who could easily replace Gensler is Commissioner Hester M. Peirce who already works at the SEC. Peirce has over the years called out the SEC for its regulation of the industry.
Related: The SEC is applying a double standard towards crypto: SEC’s Crypto Mom
