Ripple’s long wait has come to an end as Gary Gensler appears for his highly anticipated nomination hearing as the next chairman of the United States Securities and Exchange Commission before the United States Banking Committee.
This comes when Ripple and two of its top executives face a high-profile lawsuit against the regulatory commission. In a joint statement from the SEC and Ripple, Ripple said they could not settle with the previous US SEC administration under Jay Clayton’s leadership. At the same time, Ripple Labs assured its investors with hopes for a quick settlement with the US SEC through the prospect of a clean slate with Gary Gensler once he takes over the regulatory commission.
Caption: XRP investors incurred losses since the SEC filed its lawsuit
The hearing document pre-released yesterday may be considered as another glimmer of hope that Gary Gensler would be receptive to a swift resolution of the lawsuit against Ripple, as well as the legal uncertainties that currently surround cryptocurrencies in the United States.
While Gensler did not directly mention cryptocurrencies in his opening statement, he alluded to them and explains that, nowadays, the financial market is undergoing a significant transformation that benefits from emerging technologies. He also acknowledges that rules should also change with them and that he believes that financial technology can be used for good.
However, he emphasized that this can only be done if the SEC continues to harness the SEC’s core values as it services the investors, issuers, and the public. He points out that Congress created the US SEC to protect investments and maintain a fair, orderly, and efficient market to facilitate capital formation.
He notes that this can only be done if the SEC has “clear rules” for “novel financial instruments.” Otherwise, the people will be harmed.
However, the true meaning behind his statements is anyone’s guess and doesn’t necessarily allude to the massive losses the XRP investors experienced since the lawsuit went public.