Ripple prepares for SEC policy shift amid Trump’s pro-crypto agenda

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed numerous shifts and changes in regulatory landscapes. In this case, the potential replacement of Gary Gensler as SEC Chair by Donald Trump could indeed reshape the U.S. crypto sector significantly.

With Donald Trump’s promise to appoint a new Securities and Exchange Commission (SEC) chair, replacing Gary Gensler, Ripple, a blockchain company, perceives an opportunity for more advantageous regulations in the revamped regulatory environment.

The promise from Donald Trump to appoint a new Securities and Exchange Commission (SEC) chair, Gary Gensler, on his first day in office, is sparking optimism among Ripple (XRP) and the wider cryptocurrency industry in the United States, as they anticipate a more favorable regulatory climate.

Previously reported by crypto.news, Brad Garlinghouse, CEO of Ripple, has advocated for regulatory clarity and proposed the appointment of a pro-cryptocurrency chair at the Securities and Exchange Commission (SEC). He named possible candidates such as Dan Gallagher from Robinhood, Christopher Giancarlo, former head of the Commodity Futures Trading Commission (CFTC), and Brian Brooks, former Comptroller, as potential nominees.

Dear @realDonaldTrump,

— Brad Garlinghouse (@bgarlinghouse) November 6, 2024

SEC vs. crypto industry

As the new chairman of the Securities and Exchange Commission (SEC) since April 2021, I’ve been spearheading a rigorous enforcement action against major cryptocurrency players like Coinbase and Ripple, under the suspicion that they have been dealing in unregistered securities.

As an analyst, I can share that the Securities and Exchange Commission (SEC) secured a landmark $4.5 billion settlement with Terraform Labs and its founder Do Kwon, who has been detained in Montenegro since 2023. Notably, U.S. regulatory bodies imposed over $32 billion in penalties on cryptocurrency companies last year (2024) to settle compliance disagreements.

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.

As a researcher, I firmly believe that the incoming SEC chair could initiate a crucial step towards rebuilding public trust by addressing past concerns and taking decisive action. This involves withdrawing any unnecessary legal cases and extending an apology to the American people for any perceived mishaps or oversights in the institution’s past actions. While this will not reverse the harm that has been done, it serves as a strong gesture of accountability and commitment to transparency, paving the way for renewed faith in the SEC.

— Brian Armstrong (@brian_armstrong) October 29, 2024

Generally speaking, it’s common for the Chair of the Securities and Exchange Commission (SEC) to leave their position when a new administration takes office. Given this, if Gensler decides to step down, his departure would likely occur in late January, assuming Trump returns to the White House. If this happens, the SEC would find itself with a 2-2 split along party lines, which could potentially halt any further aggressive enforcement until a new chair is appointed.

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2024-11-07 20:22