Ripple has many reasons to rejoice following the announcement of Gary Gensler’s resignation as chairman of the United States Securities and Exchange Commission.
The recent upheaval at the SEC could indicate a shift in the protracted dispute between Ripple Labs and the SEC over the classification of XRP.
Ripple’s legal team has been confident about potential changes to the SEC’s stance, especially with the prospect of a more crypto-friendly CEO at the helm.
A new chapter in Ripple’s legal dispute
The news of Gensler’s departure came as a surprise, but for Ripple, it marks a positive opportunity. Ripple’s legal counsel has continually criticized Gensler’s strong stance on cryptocurrency regulation, particularly regarding the designation of XRP as a security.
Gary Gensler’s controversial period as chairman of the U.S. Securities and Exchange Commission (SEC) ended Friday when he officially resigned.
Stuart Alderoty, Ripple’s chief legal officer, mocked Gensler’s departure at social media site X, saying the cryptocurrency community would quickly forget about him.
Today marks Gensler’s last full day. Starting tomorrow, ‘Gary who?’ will be the only appropriate response if someone mentions his name. Ahead.
–Stuart Alderoty (@s_alderoty) January 17, 2025
Many within the cryptocurrency community are expecting a change in regulatory stance as Paul Atkins emerges as a potential replacement.
Since they argue that a new SEC chair could ease tensions and reduce regulatory risks related to digital assets, Ripple’s lawyers see this as a potential opportunity for more favorable treatment.
The SEC’s controversial strategy under Gensler
Under Gensler, the SEC gained a bad reputation for treating cryptocurrencies negatively. Many have objected that the current state of affairs simply reflects the inconsistency that characterizes its leadership, since the agency’s strategy appears unfavorable to the developing industry.
Ripple and other crypto advocates have expressed frustration with the SEC litigation and perceived ambiguity in cryptocurrency regulation. With Gensler set to retire, the discussion has increasingly turned to how a new SEC chairman could change the landscape.
Another example of how @GaryGensler leave him @SECGov in disgrace. The SEC’s reputation, both inside and outside the courtroom, is completely in ruins. Paul Atkins has his work cut out for him.
It would be nice to see real reform of the SEC. Additionally, we need to… https://t.co/ZnaSdbJbrc
– John E Deaton (@JohnEDeaton1) January 14, 2025
Deaton on the future of the SEC
A well-known lawyer of the XRP group, John Deaton, also said something about this. He said the SEC was a mess when Gensler was in charge and the release was a big chance for things to improve.
Deaton says the SEC has gone too far in its efforts to regulate cryptocurrencies, and many in the industry are questioning its methods. At this point, everyone is wondering if the new SEC leadership will make things fairer and more open.
What lies ahead for Ripple?
The future is unknown although the Ripple team hopes that the SEC’s next steps deviate from historical results. Although XRP is the subject of constant legal discussions, Ripple hopes that the new leadership will guide the company on a path more suited to development and innovation in the digital currency sector.
XRP, Ripple’s native coin, jumped to $3.13 on Friday as news of Gensler’s resignation broke. The coin is up over 30% in the past seven days.
Featured image from Vox, chart from TradingView
