Biden Team Angers New York Times With Ripple Labs Executive Appointment

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Last Updated on 25 January 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Whereas the cryptosphere was in disarray over Janet Yellen’s comments last week that Bitcoin should be closely looked at because of its possible use for illegal activities, it sighed a breath of relief a few days ago when the Wall Street Journal mentioned that the Biden White House would probably appoint a former Ripple Labs Executive as Comptroller of the Currency.

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SEC versus Ripple

Last month, the third biggest cryptocurrency by market capitalization XRP suffered a huge drop when the SEC announced it would sue the two top executives (Chris Larsen, Chairman, and Brad Garlinghouse, CEO) of Ripple Lab for selling unregistered securities. Brad Garlinghouse assured everyone that his team would fight the charges, but a brutal selloff nevertheless started.

The SEC is:

Engaged in an all-out attack on the crypto industry. You should also know and expect that the SEC will likely do everything they can to paint Ripple, Chris and me in the worst possible light.

When probable Treasury Secretary Janet Yellen commented in the beginning of the year that the cryptosphere could expect a tough look from her, it looked like more lawsuits might be in the making.

However, things could be turning around with the wish of the Biden administration to appoint Michael Barr to the position of Comptroller of the Currency. This former Treasury Department official is seen as highly favorable to fintech companies since he’s been on the advisory board for Ripple as an executive. Mr Barr served in that position from 2015 to 2017.

Not a leading reform regulator

It is exactly this which angers (mostly progressive) newspaper New York Times, which published an article this weekend that explained how a possible appointment of Mr Barr could leave the financial world, banks and crypto, without any needed regulatory overhaul.

Michael Greenberger, a law professor at the University of Maryland admitted that one of the biggest tasks that the future Comptroller would face was whether or not to grant banking charters to fintech firms, aka give possible banking powers to crypto companies for example.

If you want a Yellen type approach, aka be tough on crypto and send them through a regulatory review, he admitted to the New York Times that Mr Barr was probably not the best appointment, stating:

He will not be a bad regulator. But he will not be a leading reform regulator.

I’m sure the cryptosphere is cheering for this appointment to come through as a counterweight to Ms Yellen.