The cryptocurrency market has been awash with rumors that SEC Commissioner Hester Peirce, who advocates crypto-friendly regulations, may replace SEC Chairman Gary Gensler, who has taken a more cautious and critical approach to the industry.
But this scenario is highly unlikely, according to cryptocurrency journalist Eleanor Terrett.
Terrett, who deals with the SEC and crypto regulations, said in a tweet on Monday that Peirce, a Republican, has no chance of being nominated by Democratic President Joe Biden to lead the SEC.
Terrett quoted an unnamed SEC source as follows:
“It would be a cold day in hell for Biden to appoint a Republican, especially when he's running for reelection.”
The source of this rumor is thought to be a recent post by John Reed Stark, a former SEC employee. Stark said that the current SEC administration would not allow a Bitcoin Spot ETF, but that there is such a possibility if the SEC chairman is appointed by the Republicans. However, he stated that the critical event would be the US presidential elections.
Dubbed the “Crypto Mother” by the crypto community for her support of innovation and clarity in the industry, Peirce has served as an SEC commissioner since 2018. It was reconfirmed by the Senate in 2020 for a term ending in 2025.
Gensler, on the other hand, has been more skeptical and rigid about crypto regulation since taking office in April 2021. Gensler has repeatedly called for more congressional authority and resources to oversee the crypto market, which the SEC considers to be rife with fraud and manipulation.
*Not investment advice.