The upcoming U.S. elections have stirred significant anticipation regarding potential shifts in cryptocurrency regulations. Many in the crypto community are hopeful for more definitive policies under a possible Trump administration. During his campaign, Trump hinted at various strategies, including the potential exit of Gary Gensler from the U.S. Securities and Exchange Commission (SEC) and the establishment of a strategic Bitcoin reserve, which have sparked considerable interest.
Gary Gensler’s Stance on Cryptocurrency
In a speech delivered at the PLI’s 56th Annual Institute last week, SEC Chair Gary Gensler reiterated his position that Bitcoin is not classified as a security. However, he underscored his intent to keep targeting XRP as a security, notably omitting it from the list of non-securities that included Bitcoin, Ether, and stablecoins. Gensler emphasized, “Our focus, rather, 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. Putting this in context, aside from Bitcoin, Ether, and stablecoins, the rest of this market approximates $600 billion.”
Continuing Legal Battles and SEC’s Approach
The SEC has also signaled its intention to persist in its legal arguments concerning ‘digital asset securities,’ especially as an appeal looms in the Second Circuit Court. This ongoing litigation has caught the attention of the crypto community, with many advocating for the dismissal of the long-standing Ripple SEC lawsuit.
James Murphy Criticizes SEC
Crypto lawyer James Murphy recently took to social media to criticize the SEC for its continued use of the term ‘Digital Asset Securities’ in recent communications. This criticism comes despite the agency’s previous apology for using the term “crypto asset securities” in legal contexts. The pushback from the crypto community highlights a growing desire for clarity and resolution in regulatory matters.
Ripple’s Future and Community Expectations
Ripple CEO Brad Garlinghouse has expressed optimism about resolving the SEC lawsuit, particularly if Trump secures the presidency. This sentiment is shared by other prominent figures in the crypto space, including Lawyer Bill Morgan, who pointed out that the price of XRP seems unaffected by Ripple’s actions, as evidenced by the behavior of long-term investors.
Who Should Be the Next SEC Chair?
The potential departure of Gensler from the SEC could prove advantageous for XRP. The choice of his successor is seen as pivotal. Attorney John E. Deaton has discussed potential candidates for the SEC Chair role, highlighting Bob Stebbins and Brad Bondi. Deaton favors Brad Bondi for his progressive 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.”
Potential Shifts in SEC Policies
Former SEC official John Reed Stark has speculated on Bondi’s approach to cryptocurrency litigation, suggesting, “I would expect Brad, on his first day at SEC headquarters, to order an immediate stop on all SEC crypto-related investigations, to order the litigation unit to stay, settle or dismiss all SEC crypto-related cases forthwith.” Such a shift could significantly influence the trajectory of cryptocurrency regulation in the U.S.
XRP’s Market Performance Amidst Regulatory Uncertainty
As speculation about Gensler’s potential resignation and the resolution of the Ripple vs. SEC lawsuit under a Trump administration grows, XRP’s market performance has caught attention. The cryptocurrency recently surpassed the $1 mark and is eyeing $2, currently trading around $1.12, although it has experienced a slight dip of 0.49% in the last 24 hours.
