The US Senate confirmed Gary Gensler’s nomination as the head of the SEC with a 53-45 vote this week. Gensler was initially nominated by Biden’s administration on March 11, after a 14-10 vote by the Senate Committee on Banking, Housing, and Urban Development.
The 63-year-old administrator is the most prominent financial regulator the Biden administration has appointed so far. Many in the sector are excited about the appointment as the renowned financial expert has a track record of success.
His tenure technically terminates in June, but he will serve for the rest of the duration of the current Congress. A separate vote for his five-year term is likely to be called soon by Senate Democrats.
The former Goldman Sachs (NYSE:GS) executive is set to focus the Securities and Exchange Commission on climate change and the looming environmental crisis. This is possible now because of the 3-2 Democrat majority among the SEC commissioners.
Positioning The SEC To Win The Confidence Of Americans
With the recent developments on Wall Street, coupled with the public’s views on centralized finance and the operations of hedge fund managers, faith in the SEC is dwindling.
With Gensler’s confirmation, the issue of tightening controls on Wall Street and other financial institutions in the sector is already on people’s minds. Many expect the experienced administrator to check the lapses in Wall Street.
Gary Gensler was the Assistant Secretary of Financial Markets between 1997 and 1999 and the Secretary of Domestic Finance between 1999 and 2001.
Under Obama’s administration, he served as chairman of the Commodity Trading Commission from 2009-2014. He has the experience to make the SEC what it ought to be and properly regulate the sector.
The Senate Banking Committee chairperson, Sherrod Brown, commended the SEC boss, stating:
When it comes to enforcement, Mr. Gensler has shown he has the guts to take on bad actors, no matter how big, no matter how powerful they are, and he will hold them accountable.
Wall Street is about to be heavily policed to ensure that the irregularities of the past don’t repeat themselves.
The GameStop (NYSE:GME) saga is another issue on the agenda of Gensler. He will work with the Financial Industry Regulatory Authority to investigate whether the GameStop saga was a pump and dump scheme and further setting up permanent mechanisms to end it.
On the Flipside
Bitcoin And Digital Assets Under Gensler
With Gensler taking over the mantle at a time when cryptocurrencies are on the rise, many believe that the coast is clear, as he is not seen as a threat to cryptocurrencies.
During his tenure, American is set to approve eight pending exchange-traded funds (ETFs), following Canada, which floated the first Bitcoin ETF.
With Coinbase now listed on Nasdaq, many more could follow under Gensler’s leadership. Finally, the lawsuit between Ripple and the SEC may also be resolved amicably with Gensler on board.
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Source: Cryptocurrency - investing.com
