Gensler Gets Closer To SEC Chair But Will He Withdraw The Ripple Lawsuit?

Gary Gensler gets closer to the SEC chair position and with that, the Ripple supporters hope that one of his first acts would be to withdraw the lawsuit so let’s read more in our latest Ripple news today.

The suggestion came from the former SEC commissioner Paul Atkins who served from 2002 to 2008 and he commented that it’s within SEC’s chair to withdraw the lawsuit but if he refuses to do that, Atkins believes that the case could proceed to the Supreme Court:

 “The incoming SEC chair, Gary Gensler, could withdraw the lawsuit against Ripple. If not, the case may ultimately go before the U.S. Supreme Court.”

Biden’s pick for the SEC chair position, Gary Gensler, received a huge boost today after the 14-10 vote by the Senate Banking Committee in favor of the appointment. The matter will go before the Senate floor for confirmation and the event coincides with the total market cap that is breaking above the $1.7 trillion resistance. The last time this happened was only a day before bitcoin hit $58K. Crypto markets are bullish over the Gensler progress towards the SEC chair position and there’s a good reason for it too. IOHK CEO Charles Hoskinson pointed out that Gensler knows crypto and it boded well for having a dialogue over it:

 “The thing I like about the appointment of Gensler is that he is competent. He’s clearly a very smart guy and he fully understands our industry to the extent that he taught at MIT on our industry.”

Gensler commented previously on XRP and its status as security as back in 2018 during an MIT conference he put forward the case that both Ether and XRP have to be considered as securities.  With that being said, if he maintains his view, it is highly unlikely that he will interfere with the current legal action between the SEC and Ripple. Despite the many cries of injustice from Ripple partners and investors, the matter will have to go through the court system for the full conclusion as Gensler predicted three years ago.

As a side note, Gensler’s appointment could spell trouble for Ethereum because he believes that Ether fits the characteristics of security as well. The SEC commissioner at the time William Hinman said:

 “based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”