As Trump pledges to replace SEC Chair Gary Gensler, blockchain firm Ripple sees a chance for more favorable policies in a reshuffled regulatory landscape.
Donald Trump’s vow to replace SEC Chair Gary Gensler on “day one” is raising hopes within Ripple (XRP) and the broader crypto sector for a more friendly environment in the U.S.
As crypto.news earlier reported, Ripple chief executive Brad Garlinghouse has called for regulatory clarity, urging the appointment of a pro-crypto SEC chair. He particularly suggested candidates like Robinhood’s Dan Gallagher, former CFTC head Christopher Giancarlo, and ex-Comptroller Brian Brooks as potential nominees.
— Brad Garlinghouse (@bgarlinghouse) November 6, 2024.@realDonaldTrump, Congratulations!
Some fodder for your first 100-day checklist to get things moving:
– Fire Gensler. Day 1, no delays.
– In his place, appoint Giancarlo, Brooks, or Gallagher – they’d be massive upgrades in rebuilding the rule of law (and reputation) at the…
SEC vs. crypto industry
Since taking office in April 2021, Gensler has led a tough crackdown on crypto, targeting crypto giants such as Coinbase and Ripple for allegedly offering unregistered securities.
The SEC even secured a historic $4.5 billion settlement with Terraform Labs and its disgraced founder Do Kwon, who has been imprisoned in Montenegro since 2023. As crypto.news noted in a feature story, U.S. regulators imposed $32 billion in fines on crypto companies to resolve compliance disputes in 2024 alone.
The crypto space has long criticized Gensler’s approach, with Coinbase CEO Brian Armstrong recently suggesting that the next SEC chair should publicly apologize for what he called the “damage” done to the U.S. crypto sector.
— Brian Armstrong (@brian_armstrong) October 29, 2024The next SEC chair should withdraw all frivolous cases, and issue an apology to the American people.
It would not undue the damage done to the country, but it would start the process of restoring trust in the SEC as an institution. pic.twitter.com/kWVx73vYMs
Typically, the SEC chair resigns with a new administration. This means Gensler’s departure would not happen until late January, when Trump returns to the Oval Office. If Gensler steps down, the SEC would be left with a 2-2 party-line split, likely stalling further aggressive enforcement until a new chair is confirmed.