- Gary Gensler will direct one of Joe Biden’s financial regulation teams.
- Ethereum (ETH) and Ripple (XRP) could be classified as Securities.
- No comments from Joe Biden regarding the issue of Central Bank Digital Currency.
The United States Presidential candidate Joe Biden seems to consider Ethereum (ETH) and Ripple (XRP) as securities. Recently Biden summoned the former President of the Commodity Futures Trading Commission (CFTC), Gary Gensler, to lead one of Biden’s financial regulation transition teams.
Gary Gensler to Lead the Federal Reserve Team
Last Week on Tuesday, The Joe Biden campaign announced that Gensler, who has closely studied the rising cryptocurrency space, will now lead the team focused on the Federal Reserve, banks, and securities regulators. This appointment seems to have a significant impact on the cryptocurrency market, as Gensler has differing opinions about the cryptocurrencies.
Back then, when Barack Obama was the President of the United States, Gensler served as a key financial regulator, and also served in the Treasury Department when Bill Clinton was the President of the United States.
Ethereum and Ripple as Securities
According to 2018’s statement of Gensler, there is a strong chance that both Ripple (XRP) and Ethereum (ETH) could be considered as securities. Back in Obama’s administration, the officials also believed that Bitcoin (BTC) is not a bond.
As the first Ethereum (ETH) token was sold before the Ethereum Foundation was started, Gensler justified Ethereum as a security. Gensler also mentioned that over time this network has become more decentralized.
Gensler pointed out that, because of the high percentage of Ripple (XRP) token is owned by Ripple itself, XRP is more likely to be considered as a security. Gensler also added that Bitcoin and other Altcoins have led to a robust debate about the Central Bank Digital Currencies.
Yet no News about the Issue of CBDC
The winning candidate of the United States Presidential election yet has not commented anything about the possible issuance of the central bank digital currency. However, the United States has started off debates on the possibility. Indeed nothing has been defined in the rule of Donald Trump.
We can consider that may come with Joe Biden, the United States will launch its own central bank digital currency. However, the United States would nearly cut off against the law for the buy and sell of Ethereum and Ripple on crypto exchanges. Though we observe that such a move can impact the prices of both Ethereum and Ripple, which might not be in a right way.
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