As a seasoned researcher with over two decades of experience in financial markets and blockchain technology, I find the potential shift at the SEC under a pro-crypto leader to be a game-changer for the industry. My career has taken me through multiple bull and bear markets, but the excitement surrounding this development is unlike anything I’ve ever witnessed.


TL;DR

  • Trump’s pledge to replace SEC Chair Gensler with a pro-crypto leader has sparked excitement across the community.
  • Legal experts believe such changes could lead to a faster resolution of the Ripple v. SEC case.

Gensler’s Possible Successor

Donald Trump’s win in the U.S. presidential elections ignited a significant surge in the cryptocurrency market following his shift from being skeptical to supportive about this asset class. During his campaign, Trump expressed intentions to turn America into the global leader in cryptocurrencies and suggested establishing a strategic Bitcoin reserve.

He additionally made clear his plan to dismiss Gary Gensler as the SEC’s Chairman on his first day in office, a declaration that sparked immense excitement among the XRP community. For those unaware, the Commission and its leader have been engaged in conflict with several cryptocurrency companies, including Ripple.

Crypto X is pondering if the newly elected president will keep his word regarding cryptocurrencies and speculating on potential replacements for Gensler as head of the securities regulator. Recently, Eleanor Terrett, a well-known journalist at Fox Business, reported that she spoke with someone close to the Trump transition team, who suggested that the new appointee will be supportive of cryptocurrencies.

INQUIRY: I sought information from someone with connections to the Trump’s transition group regarding potential candidates for the position of Secretary of Commerce, and if considerations about their perspectives on cryptocurrency might influence the selection process.

The response: “I promise you it will be someone pro-crypto.”

— Eleanor Terrett (@EleanorTerrett) November 8, 2024

The appointment of a new SEC Chairman who is more supportive of innovation and less likely to impede the progress of the cryptocurrency industry through frequent legal disputes is seen as positive news, not just for those invested in XRP, but for the entire digital assets market.

The Potential Effect on the Case

Last week, Fred Rispoli (a US attorney who has been following the updates surrounding the Ripple v. SEC lawsuit) argued that the election of Trump could lead to “extreme changes” at the watchdog.

He claimed that the $125 million penalty, which Federal Judge Torres ordered Ripple to pay for violating certain securities laws, is the biggest win the agency can gain. Rispoli also thinks that the SEC’s new potential leadership will “recognize this whole case was idiotic and settle at that point.”

He mentioned that it could involve a decrease in the penalty fee and an understanding that Ripple’s current XRP sales are well-structured, ensuring they do not qualify as investment contracts.

As an analyst, I’d like to add my perspective to the conversation. Jeremy Hogan, an American lawyer, has also shared his thoughts on the matter. He speculates that the incoming SEC leader might choose to discontinue all past non-fraud crypto lawsuits. In alignment with Rispoli, Hogan anticipates that this case could reach a formal settlement, potentially amounting to $125 million.

It would feel uncomfortable to accept anything less than what the court has already granted in this case! Given that Coinbase and other ongoing legal cases, they will likely be dismissed. This process might take a while, not necessarily in January, but possibly before summer. That’s my prediction, and I stand by it.

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2024-11-11 14:52