Ladan Stewart, a distinguished former SEC attorney renowned for her pivotal role in spearheading cases against major players like Ripple and Coinbase, is now advocating for significant transformation within the Securities and Exchange Commission (SEC). Stewart argues that a fresh leader is crucial to mend the SEC’s tumultuous relationship with the burgeoning cryptocurrency industry. In a recent conversation with Fox Business, she expressed her belief that new leadership could pave the way for improved collaboration with crypto enterprises.
Frustration with Gary Gensler’s Approach
Since Gary Gensler assumed the role of SEC Chair in 2021, the agency has been embroiled in numerous enforcement actions. This aggressive stance has led to growing frustration among cryptocurrency leaders, who perceive Gensler as a roadblock to their initiatives. The tension has created a formidable barrier for crypto companies eager to engage with the SEC on regulatory issues. Ripple CEO Brad Garlinghouse characterized Gensler’s term as a “reign of terror,” highlighting that the agency’s aggressive actions make it challenging to initiate constructive dialogue.
This escalating tension has driven a wedge between the SEC and the cryptocurrency industry, complicating efforts to establish common ground. Stewart recounted her transition to the private sector, where she was struck by the deep-seated resentment within the industry toward Gensler. She warned that without a leadership change, this ongoing conflict could undermine the potential for productive discussions between regulators and industry stakeholders.
Rising Optimism for Change
Stewart is not alone in her call for change. Several former SEC officials, including ex-enforcement directors and unit heads, have departed the agency to join private law firms representing cryptocurrency clients. Notable figures among them are former SEC Chair Jay Clayton and former finance director Bill Hinman, both of whom have taken advisory roles in the crypto sector to champion policies that support industry growth.
Hope for Change as U.S. Elections Approach
As the United States approaches a pivotal election period, many within the cryptocurrency community are optimistic that new SEC leadership could usher in a more receptive attitude toward the industry. Stewart remains hopeful that regardless of the election’s outcome, a fresh leader could facilitate a harmonious relationship between the SEC and crypto companies, fostering an environment of mutual understanding and cooperation. She emphasized that a new approach could enable both parties to collaborate more effectively, ultimately benefiting the broader financial ecosystem.
