Is crypto entangled in an ego war, what’s happening with SEC’s legal setbacks, the recent cases are a huge cause of worry for investors and big institutions who are afraid to enter the regulatory muddle. At this time, Gary Gensler’s call is larger than expected; the meeting may make key choices.
Get insight by diving in.
Gensler to Testify Before Two Congress Panels
Notably, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is set to appear before two congressional committees in September 2023. Although the official announcement does not say that the cryptocurrency market would be the main topic of discussion, it is likely that it will be the case. This follows the SEC’s recent legal defeats, such as the summary judgment in the XRP action and the success in the Grayscale spot Bitcoin ETF lawsuit.
With the #FireGaryGensler trend growing, the upcoming meeting’s agenda remains uncertain. People are eager to see if it will address crypto and Gensler’s involvement in legal proceedings.
What to Expect in the Meeting?
Gensler’s upcoming hearings will involve the U.S. Senate Banking Committee GOP and the U.S. House Committee on Financial Services Republicans. One key aspect of these hearings is the SEC’s plans regarding the approval of spot Bitcoin ETF applications from companies like BlackRock, Ark Invest, Fidelity, and Bitwise. The meeting is also very crucial as there will be added pressure on the SEC post-Grayscale victory to prove and clarify its stance on these applications. Moreover, Grayscale is aiming to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF.
In this context, Gensler has softened his aggressive take on crypto. Changing his stance from positive to neutral in an interview following the Ripple vs. SEC lawsuit summary judgment. He indicated that the SEC commissioners would make the decision to appeal the court’s ruling collectively, signaling a shift from his previous outspoken approach against crypto businesses.
The crypto wants him to resign only then a fair and transparent regulatory framework can be prevailed.
Impact on Crypto Market
Meanwhile, such events are directly related to crypto movements as they decide the fate of the trending tokens. The price of XRP could potentially rise to $1, building on the recovery that followed Grayscale Investments’ successful appeal against the SEC. The cross-border money remittance token has experienced a 2.8% increase to $0.53, with substantial trading volume and market capitalization. The king crypto BTC also surged to $28k after Grayscale’s SEC victory, but it might dip to $25k again.
