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President-elect Joe Biden called crypto-literate Gary Gensler, former chairman of the Commodity Futures Trading Commission (CFTC), to lead one of his financial regulation transition teams.
Biden’s campaign announced Tuesday that Gensler will specially lead the team focused on the Federal Reserve, banks and securities regulators.
The former Obama administration official said he believes Bitcoin (BTC) is not a stock, but both XRP and Ethereum (ETH) probably are.
Gensler said in a 2018 interview with the New York Times,
“There is a strong reason for both – but particularly for Ripple – that they are non-compliant securities.”
Gensler, who previously worked as an executive at Goldman Sachs, said Ethereum could be classified as such because the first ETH tokens were sold before the Ethereum Foundation network was functional.
However, he also noted that Ethereum has become more decentralized over time, giving the asset the potential to avoid security classification.
XRP, on the other hand, is more likely to be classified as a stock because a high percentage of the asset is owned by Ripple, the former CFTC chairman says.
Gensler also said that Bitcoin and other cryptocurrencies have led to “healthy debates” over central bank digital currencies (CBDCs).
Disclaimer: Opinions expressed in The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that transfers and trading are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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