XRP Lawsuit: Former SEC Official Says It’s Done For SEC

The direction of the U.S. Securities and Exchange Commission (SEC) and its approach to cryptocurrency regulation in the future remains uncertain, as a major leadership change could shake the foundation of the regulatory agency.

During his campaign, current U.S. President-elect Donald Trump promised to fire SEC Chair Gary Gensler on day one of his administration. John Reed Stark, a former SEC official, has also weighed in on the situation.

Will the SEC’s Reign of Terror End?

Stark expressed skepticism about the agency’s willingness to pursue significant enforcement actions against the cryptocurrency industry in the coming years. His assessment of the SEC’s trajectory is based on his belief that the agency is nearing the end of its current course.

“FYI, stick a fork in the SEC, it’s done,” he stated, suggesting that the SEC is unlikely to bring any major lawsuits against cryptocurrency companies in the near future.

Under Gensler’s administration, the SEC continually scrutinized crypto companies, but with his tenure coming to an end, a new crypto-friendly SEC Chair could turn the regulator around entirely.

Ripple’s Chief Legal Officer (CLO) Stuart Alderoty has echoed these sentiments, urging Gensler to step down voluntarily. “Gensler and his anti-crypto minions should voluntarily stand down.” He noted that if this doesn’t happen, the new SEC Chair can remove them through internal mechanisms.

Notably, Ripple CEO Brad Garlinghouse recently reminded Trump of this promise to replace Gensler. Gensler’s five-year term is set to expire on June 5. However, Stark notes that Gensler cannot be forced to resign before the end of his term, as the SEC is an independent agency and its commissioners have fixed terms.

Despite the uncertainty surrounding Gensler’s future, industry experts predict that his successor will take a more accommodating stance towards cryptocurrencies.

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What’s Next for the SEC?

According to legal expert Jeremy Hogan, Gensler will likely step down before January 20. He also believes the new SEC head will likely issue “marching orders” that all non-fraud cryptocurrency cases need to be dropped. Hogan anticipates that the ongoing cases, such as the SEC’s lawsuits will either be settled or dismissed.

Hogan predicts that the Ripple case will be settled for the judgment amount of $125 million, while the Coinbase case will be dismissed. “This will take some time. Not January, but perhaps before summer,” Hogan noted.

The crypto market is changing rapidly, and Gensler’s removal could help XRP make history as analysts predict. The only questions are how soon he will leave his position and how quickly the lawsuits will be settled.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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