Cryptocurrency Market Jumps after Gary Gensler Passes Senate Committee Vote

President Joe Biden’s Nominee for the Chairman of the SEC is getting closer to the final appointment.

The cryptocurrency market reached a market cap of $1.7 trillion on Thursday after the Senate Banking Committee in the US voted in favor of Gary Gensler to take charge as the Chairman of the Securities and Exchange Commission (SEC).

According to the official announcement, the Senate Committee voted 14-10 in favor of Gensler. In January 2021, US President Joe Biden nominated Gensler to lead the SEC. The cryptocurrency market jumped nearly 3% following the news.

Gensler is known for his soft stance on cryptocurrency assets. Earlier this month, Gensler said that he will work to promote innovation. The former Chief of the US Commodity Futures Trading Commission (CFTC) added that Bitcoin and other digital currencies brought new thinking to payments and financial inclusion.

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Bitcoin, the world’s largest cryptocurrency, touched $57,000 yesterday as the total market cap of BTC crossed $1.05 trillion. In addition, Ethereum posted strong gains this week as the digital currency jumped above $1,800 for the first time in nearly 3 weeks. As of writing, Bitcoin is trading above $55,000 while ETH is hovering around $1,775.

SEC and Cryptocurrency Market

The financial law enforcement agency played a major role in the crypto ecosystem during the last few years. In December 2020, the SEC filed a lawsuit against Ripple and its executives for selling unlicensed securities in the form of XRP. Jay Clayton, the former Chairman at the SEC was known for his tough stance on cryptocurrency assets. Clayton’s last day at office resulted in a $50 billion sell-off in the crypto market. The crypto community is hopeful that the appointment of Gensler will be beneficial for the overall ecosystem in the US because of his innovative thinking.

Gensler has extensive experience in financial markets. He worked for Goldman Sachs and served as the Assistant Secretary of the Treasury for Financial Markets between 1997 and 1999. Furthermore, Gensler served as a CFO for Hillary Clinton during the presidential campaign of 2016.

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