Gary Gensler’s Insights on Cryptocurrencies
In a noteworthy address at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation in New York, US SEC Chair Gary Gensler hinted at a possible departure from the agency. During his speech on November 14, Gensler shed light on the crypto market, categorizing Bitcoin, Ethereum, and stablecoins as non-securities. He emphasized the status of over 10,000 altcoins, including Ripple’s XRP, as securities according to the Howey test.
Gensler explained, “Our focus 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, Ethereum, 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.”
End of an Era
The potential end of an era for Gensler at the SEC captivated the crypto community. His concluding remarks resonated with many enthusiasts, as he reflected on his tenure, stating, “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.”
With the recent election victory of pro-crypto leaders, spearheaded by President-elect Donald Trump, the SEC is anticipated to experience a leadership change, aligning more with crypto-friendly policies. Notably, 18 US states have initiated legal action against the SEC under Gensler, accusing the agency of exceeding its regulatory mandate concerning cryptocurrencies.
Stuart Alderoty, a vocal critic, commented, “Gary Gensler’s institutional damage to the SEC runs deep. His legacy of undermining American innovation and failing to uphold the law is shameful. With 18 states suing to hold him accountable, I look forward to him soon becoming an unfortunate footnote in SEC history.”
Impact on the XRP Market
The XRP market has faced significant challenges due to the SEC’s regulatory actions. Despite a recent ruling clarifying that XRPs sold via crypto exchanges are not investment contracts, the U.S. SEC has filed an appeal, causing further market instability. However, under Trump’s administration, Gensler’s influence on the XRP market is expected to wane.
Recent data indicates a surge in XRP prices, driven by increased interest from whale investors. Wallets holding at least 1 million XRP now collectively possess 45.61 billion tokens, marking their highest accumulation since June 2018. Over the past two years, whales and sharks have amassed an additional 3.44 billion XRP, reflecting an 8.16% increase. Traders have enjoyed a remarkable 40% return in just seven days.
As of the latest market updates, XRP prices have surged by over 47 percent this week, trading around 82 cents during early Asian sessions on Friday.
