With Donald Trump’s reelection and a Republican-controlled Senate, crypto firms are preparing to push for a “new approach” from federal agencies. Ripple hopes the new administration will take digital asset policy out of the courtroom, aiming instead for reforms within government agencies. Ripple’s chief legal officer, Stuart Alderoty, said in an exclusive interview:
The SEC is a bureaucracy, but policy is people, and people is policy. So hopefully, if you change some of the leadership at the SEC, we can start seeing a more rational approach to what they have been pursuing.
After Trump’s victory on Nov. 6, Coinbase’s Chief Legal Officer, Paul Grewal, echoed the sentiment on social media, urging regulators to “stop using crypto.” Both Coinbase and Ripple backed pro-crypto candidates heavily in this election.
The calls for change at the SEC reflect a major Trump promise to crypto supporters: to replace SEC Chair Gary Gensler immediately. Under Gensler’s leadership, the SEC launched enforcement actions against numerous crypto companies, largely over disputes around whether digital assets should be classified as securities.
Trump’s win sparks hope for Ripple
Ripple has been involved in a legal battle with the SEC since 2020, after the agency questioned whether XRP, Ripple’s native token, should be considered a security. Ripple’s CEO, Brad Garlinghouse, estimated the company could spend as much as $200 million defending itself. With President-elect Trump soon taking office, he’ll have the power to replace the SEC Chair, though he’d need a valid reason.
Any long-term replacement would still require Senate approval. Gensler’s current term doesn’t end until 2026. Speculation is rising that SEC Commissioner Hester Peirce might step in as a potential replacement. Known for her supportive stance on crypto and vocal opposition to strict enforcement, Peirce has even earned the nickname “Crypto Mom” in the industry.
While the SEC’s leadership direction remains in the air, Gensler has already hinted at what could lie ahead. In a recent conversation with The Wall Street Journal, he noted, “Presidents traditionally get to choose the SEC chair, and that’s a healthy part of our democracy.”
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