TL;DR
- Gary Gensler was replaced with pro-crypto advocate Mark Uyeda.
- The lawsuit between Ripple and the securities regulator continues, with the XRP army expecting a favorable resolution after the changes at the agency’s helm.
Gensler’s Tenure is Over
Gary Gensler – the former Chairman of the US Securities and Exchange Commission (SEC) – officially stepped down on January 20. He spent almost four years at the helm, during which the regulator filed countless lawsuits against crypto businesses.
Perhaps the most popular is the legal tussle versus Ripple Labs (the company behind the cryptocurrency XRP). The entities have been at war since December 2020, and despite the numerous developments and court rulings, the case remains ongoing.
Gensler’s resignation coincided with Donald Trump’s return to the White House as America’s 47th President. Upon assuming power, the Republican enforced multiple amendments. Among those was the designation of Mark Uyeda as Gensler’s successor.
Uyeda is known as a proponent of balanced regulation that ensures investor protection while avoiding regulatory overreach. He has also presented himself as an advocate of the crypto industry, criticizing the SEC’s previous leadership for its negative stance on the matter.
“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm,” Uyeda said in November last year.
The crypto community has long desired Gensler’s resignation and his replacement with someone more open toward the industry. Uyeda’s appointment might sound like great news, but the XRP army should keep in mind that the final resolution of the lawsuit between Ripple and the SEC is no easy task and could be prolonged in time due to the complexity of the legal process.
Perhaps XRP’s recent rally that started after the US elections could be attributed to a large extent to the hopes of a more favorable regulatory landscape in the country during the Trump administration. However, those who have pushed for a quick resolution could be disappointed as Gensler’s departure doesn’t necessarily mean the case is done. As such, the company’s native token might correct hard if it turns out that there’s a classic ‘sell-the-news’ event unfolding.
Meanwhile, the American attorney Jeremy Hogan noted that Uyeda will serve as acting Chairman of the securities regulator until the permanent one is confirmed. He expects this to happen in March or April this year.
Not long ago, Trump nominated Paul Atkins to lead the agency. The latter is also considered a proponent of cryptocurrencies but we have yet to see whether the Commission will change its approach once he steps in charge.
Ripple v. SEC: What’s New?
As mentioned above, the lawsuit between the entities has witnessed many developments in the past few months. Most recently, the SEC filed an opening brief requesting the US Court of Appeals to overturn Judge Torres’ decision from 2023. Back then, the magistrate ruled that XRP sales on public exchanges to retail investors did not constitute securities transactions.
Some of Ripple’s executives were not pleased with the regulator’s latest actions. CEO Brad Garlinghouse described the filing as “insanity,” whereas CLO Stuart Alderoty called it “a rehash of already failed arguments” that are likely to be abandoned by the next administration.
“We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving,” the latter added.
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