In a striking turn of events, Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC), known for his firm regulatory stance against blockchain firms and cryptocurrencies, was once a proponent of Ripple’s XRP. In 2018, at an economic forum discussing blockchain’s influence on finance, Gensler spoke positively about XRP’s role in facilitating efficient cross-border payments.
Gensler’s Surprising Endorsement
In 2018, Gensler engaged in an insightful exchange with Jo Marie Griesgraber from the nonprofit “New Rules for Global Finance.” The conversation dove into blockchain technology’s potential to transform international remittance processes. Griesgraber pointed out the high transmission costs and inefficiencies in sending money between underdeveloped countries.
Gensler, separating Bitcoin’s concept from broader blockchain technology applications as he tends to, emphasized the need for a bridge currency in cross-border transactions. He noted that stablecoins, tied to major fiat currencies or innovative digital assets like XRP, could serve this purpose effectively. His perspective in 2018 highlighted the utility of XRP as a potential game-changer in global financial transfers.
Contrasting Past and Present
This past acknowledgment starkly contrasts Gensler’s current approach as the SEC chair, particularly notable given the ongoing legal disputes involving the SEC and various cryptocurrency firms. Gensler’s previous views shed light on blockchain regulation’s evolving and multifaceted nature and its intersection with traditional financial systems.
Meanwhile, U.S. Representative Warren Davidson has renewed his push against Gensler’s leadership at the SEC. Davidson, the proponent of the June-introduced SEC Stabilization Act, cites the commission’s recent crackdown on Kraken as a basis for Gensler’s removal. The act aims not only to reform the SEC but also to reconsider his role within the organization.
The bottomline is Gensler’s previous recognition of XRP’s potential in reducing the costs and inefficiencies of international money transfers now resonates as a reminder of the diverse perspectives and possibilities within the blockchain and cryptocurrency industry.
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