The upcoming US elections have sparked discussions and expectations regarding cryptocurrency regulations. A potential victory for Trump is seen by many as a catalyst for clearer regulatory policies in the crypto sphere. Trump has previously expressed interest in establishing a strategic Bitcoin reserve and hinted at changes in the Securities and Exchange Commission (SEC), particularly with the possible exit of Gary Gensler. These developments could herald a new era for digital assets as market participants look forward to more crypto-friendly regulations.
Gary Gensler’s Stance on Bitcoin and XRP
In a recent speech at the Practising Law Institute’s 56th Annual Institute, SEC Chairman Gary Gensler reaffirmed that Bitcoin is not considered a security. However, he made it clear that the SEC’s focus remains on other digital assets, including XRP, which he did not mention alongside Bitcoin, Ether, and stablecoins. Gensler emphasized, “Our focus has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities. Aside from Bitcoin, Ether, and stablecoins, the rest of this market approximates $600 billion.” This statement reflects the ongoing scrutiny and regulatory pressure on various cryptocurrencies, especially XRP.
James Murphy Criticizes SEC
James Murphy, a prominent crypto lawyer, recently criticized the SEC in a social media post for repeatedly using the term ‘Digital Asset Securities.’ He argued that the agency failed to adhere to its earlier apology for using the term “crypto asset securities” in legal contexts. The crypto community continues to call for the dismissal of the longstanding Ripple SEC lawsuit, with Ripple CEO Brad Garlinghouse expressing hope for a resolution following a Trump win. Additionally, Lawyer Bill Morgan highlighted that XRP’s price is not significantly influenced by Ripple’s actions, as evidenced by long-term investor behavior.
Who Should Be The Next SEC Chair?
The potential departure of Gary Gensler from the SEC could benefit XRP, but Trump’s choice for the agency’s leadership is crucial. Attorney John E. Deaton has put forward two candidates for the SEC Chair position: Bob Stebbins and Brad Bondi. Deaton favored Brad Bondi for his views on decentralized finance (DeFi) and self-custody, stating, “He (Brad Bondi) also went further and said that absolutely 100%, when you take a DeFi protocol and you couple it with self-custody, the SEC’s got no business being involved. There are no implications of securities laws. That is what we need.” Former SEC official John Reed Stark also commented on Bondi’s potential stance on crypto litigation, suggesting, “I would expect Brad, on his first day at SEC headquarters, to order an immediate stop on all SEC crypto-related investigations and to instruct the litigation unit to stay, settle, or dismiss all SEC crypto-related cases forthwith.”
Ripple CLO Shares Key Points To Consider
In a recent social media update, Ripple’s Chief Legal Officer, Stuart Alderoty, outlined critical considerations for the crypto industry. He emphasized the importance of the transition team making informed decisions regarding the new SEC chair. Alderoty suggested several priorities, including ending all non-fraud crypto litigation on the first day, securing commitments from Commissioners Uyeda and Peirce, collaborating with financial regulators and Congress on clear crypto regulations, renouncing the 2018 Hinman speech and 2019 framework, ensuring transparency in the Freedom of Information Act (FOIA) process, and restoring public trust by addressing past issues within the SEC.
As the legal landscape evolves, XRP’s price has shown resilience, surpassing the $1 mark and aiming for $2 amid speculations of Gensler’s resignation and the potential resolution of the Ripple vs. SEC lawsuit under a Trump administration. Currently, XRP trades at approximately $1.12, experiencing a slight 0.49% dip in the past 24 hours.
