Why Did Gary Gensler Do a U-Turn on Cryptocurrency?

In a surprising twist, Gary Gensler, the current head of the U.S. Securities and Exchange Commission (SEC), known for his strict stance on blockchain and cryptocurrencies, was once a fan of Ripple’s XRP. Picture this: in 2018, at a discussion about how blockchain impacts finance, Gensler praised XRP for making cross-border payments smoother.

Gensler’s 2018 Vision

That same year, gary gensler gary gensler Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC). His studies in finance and blockchain at MIT have helped him develop U.S. cryptocurrency regulations and policies. Quick Facts Full name Gary Scott Gensler Birth 18-10-1957, Baltimore, Maryland, United States Nationality American Education MBA from the University of Pennsylvania Marital status Married to Francesca Danieli (1986-2006) Net worth Estimated $100 million   Gensler has advocated for enhanced supervision of digital assets, seeking to regulate cryptocurrencies similar to securities. His work at the SEC has focused on safeguarding investors, regulating crypto exchanges, and establishing stablecoin policies.   Gary Gensler - Career Highlights 1997 – Became Assistant Secretary of the Treasury. 2009 – Led CFTC, regulating financial derivatives post-2008 crisis. 2018 – Taught blockchain and crypto at MIT. 2021 – Appointed SEC Chairman, focusing on crypto regulations. 2022 – Proposed stricter rules for crypto exchanges. 2023 – Took legal action against major crypto firms. 2024 – Advocated for stronger stablecoin and DeFi regulations.   Gary has collaborated with multiple lawmakers in formulating crypto policies. Even with disagreements with crypto investors regarding crypto policies, he continues to be a key player in the changing dynamic between regulatory frameworks and blockchain advancement.   Awards & Recognitions of Gary Gensler Year Institution  Description 2009 U.S. Treasury Financial Regulation Leader 2018 MIT Blockchain & Crypto Educator 2021 SEC SEC Chairman Overseeing Crypto Policies 2023 Bloomberg Most Influential Regulator in Crypto 2024 Forbes Top Policy Maker in Digital Assets   Useful Links to Connect With Gary Gensler Platform Link X (formerly Twitter) twitter.com/GaryGensler CFTC website Chairman Gary Gensler   Chairman had a chat with Jo Marie Griesgraber from the nonprofit “New Rules for Global Finance.” They talked about how blockchain could change international money transfers. Griesgraber pointed out the high costs and problems with sending money between less developed countries.

Breaking it down, Gensler, always separating bitcoin org bitcoin org - Event OrganiserTechnologyPayment solution   from the broader use of blockchain, stressed the need for a “bridge currency” in cross-border deals. He thought stablecoins, tied to regular currencies or cool digital assets like XRP, could be the key to easy global money transfers.

Well…What Happened Now?

Now, Gensler’s time as the SEC boss looks pretty different from his past support for XRP. This is interesting, especially considering the SEC is in a legal battle with many crypto firms. Gensler’s old views show how tricky it is to regulate blockchain in the world of traditional finance.

Also Read: John Deaton’s Advice on Handling SEC Chair Gary Gensler’s Actions

Slamming Gensler’s SEC Leadership

In the middle of all this, U.S. Representative Warren Davidson is against Gensler leading the SEC. He’s using the recent SEC actions against Kraken as a reason to get rid of Gensler. Davidson’s SEC Stabilization Act not only wants to change how the SEC works but also wants to rethink Gensler’s role.

So, to sum it up, Gensler once thought XRP could make global money transfers cheaper and easier. Now, as the SEC boss, things have changed. This shift from being a fan to being a rule enforcer shows how complex the world of crypto and blockchain can be.

What are your thoughts on Gary Gensler’s changing stance on XRP?