The issue of securities and which digital coins are securities or not continues in the crypto space.
It’s been just revealed that the projected president of the US, Joe Biden has tapped the crypto-literate Gary Gensler, former chairman of the Commodity Futures Trading Commission (CFTC), to lead one of his financial regulation transition teams.
Ethereum and XRP in the spotlight
The online publication the Daily Hodl notes that the Biden campaign revealed on Tuesday that Gensler would especially direct the team that’s focused on the Federal Reserve, banking and securities regulators. Check out the complete official details.
It has also been reported that the former Obama administration official has stated that he believes Bitcoin (BTC) is not a security, but both XRP and Ethereum (ETH) probably are securities, according to the notes coming from the same publication.
Gensler said the following back in a 2018 interview with the New York Times:
“There is a strong case for both of them – but particularly Ripple – that they are noncompliant securities.”
If you want, you can check out the original article from back in 2018.
It’s also important to note that Gensler previously worked as an executive at Goldman Sachs, and he said that Ethereum could be classified as such because the very first ETH tokens were sold before the Ethereum Foundation’s network was functional.
He also said that Ethereum became more decentralized over the years, and this gave the coin the potential to avoid the security classification.
He also addressed the coin XRP, saying that this is more likely to be categorized as a security due to the fact that a really high percentage of the asset is owned by Ripple.
Gensler has also said Bitcoin and other cryptos have led to “healthy debates” about central bank digital currencies (CBDCs).
Stay tuned for more available details about the situation.