Ripple Anticipates Regulatory Change as Trump Vows to Replace SEC Chair Gensler

Blockchain company Ripple sees opportunity in a new regulatory environment as Trump promises to replace SEC Chair Gary Gensler for more friendly regulations.

The promise of Donald Trump to replace Gary Gensler, SEC Chair, on “day one,” is raising hope for ripple XRP and the larger crypto market for a more favorable environment.

Ripple CEO Brad Garlinghouse has urged for regulatory clarification, including the appointment of a pro-crypto SEC head. He specifically named Robinhood’s Dan Gallagher, former CFTC head Christopher Giancarlo, and former Comptroller Brian Brooks as nominees.

https://twitter.com/bgarlinghouse/status/1854134741089316961?ref_src=twsrc%5Etfw

SEC versus the crypto

Since taking office in April 2021, Gensler has spearheaded a strong crackdown on cryptocurrency and targeted crypto behemoths like Coinbase and Ripple for allegedly providing unregistered securities.

The SEC also reached an unprecedented $4.5 billion settlement with Terraform Labs and its discredited founder, Do Kwon, who has been imprisoned in Montenegro since 2023. As crypto.news reported in a feature story, US regulators fined crypto businesses $32 billion in 2024 alone to resolve compliance problems.

The crypto community has long criticized Gensler’s stance. Coinbase CEO Brian Armstrong recently stated that the next SEC chair should publicly apologize for the “damage” done to the US crypto business.

The 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

— Brian Armstrong (@brian_armstrong) October 29, 2024

 Ripple’s CEO Garlinghouse Responds to Trump’s win

After what he called “a frustrating journey,” Ripple CEO Brad Garlinghouse discussed the impact of Trump’s election on cryptocurrency regulation. Garlinghouse remained optimistic in a statement and stated that years of what he has referred to as the SEC’s “interference” in the digital currency business may be giving way to a possibly more favorable adjustment in regulatory policy.

I’ve shared some thoughts on what the Trump administration could mean for crypto and wanted to also recognize the XRP family’s patience and unwavering support.
A lot has happened since XRP was the 2nd most valuable digital asset. It’s been – at times – a frustrating journey.

~6…

— Brad Garlinghouse (@bgarlinghouse) November 7, 2024

Brad Garlinghouse made reference to the XRP community’s resilience and said that “the tide is turning” in their favor, adding, “we can see a light at the end of the tunnel,” without specifically addressing the likelihood of the lawsuit being settled.

The remarks of Garlinghouse follow recent court decisions which ordered the SEC to submit the initial brief for its appeal in the Ripple case on or before January 15, 2025. Should the SEC fail to reach this deadline, the appeals could be dismissed, therefore restricting the Securities and Exchange Commission’s authority until new management arrives.

Gensler’s Departure and the SEC’s Direction under Trump Administration

Typically, the SEC chair steps down with a new government. This implies Gensler’s exit will not occur until late January, when Trump returns to the Oval Office. If Gensler steps down, the SEC will have a 2-2 party-line split, presumably delaying further strong enforcement until a new chair is appointed.

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Arslan Ali Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.