As the U.S. approaches another election season, the possibility of a Trump victory brings with it a wave of expectations for the cryptocurrency industry. During his campaign, Trump has expressed his intentions to establish clear regulatory policies for crypto, which could include the departure of Gary Gensler and the creation of a strategic Bitcoin reserve. These proposed changes have generated significant interest and speculation within the crypto community.
Gary Gensler’s Stance on Cryptocurrency
Recently, in his speech at the 56th Annual Institute of the Practising Law Institute (PLI), Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), reiterated that Bitcoin is not considered a security. Gensler emphasized the SEC’s focus on other digital assets, particularly those that courts have ruled as securities. He pointed out that aside from Bitcoin, Ether, and stablecoins, the digital asset market is valued at approximately $600 billion.
The SEC has also indicated its intent to continue its legal arguments regarding digital asset securities, as evidenced by its actions in the Second Circuit Court appeal. Gensler’s position highlights the ongoing debate and regulatory challenges facing the rapidly evolving crypto market.
James Murphy Criticizes the SEC’s Approach
James Murphy, a prominent crypto lawyer, recently expressed criticism of the SEC’s persistent use of the term ‘Digital Asset Securities’ in its communications. This criticism was amplified by the agency’s failure to adhere to a recent apology for using the term “crypto asset securities” in legal proceedings.
The ongoing Ripple lawsuit has drawn significant attention from the crypto community, with many calling for its dismissal. Ripple CEO Brad Garlinghouse has publicly stated his hope for a resolution to the lawsuit, potentially following a Trump victory. Additionally, Lawyer Bill Morgan has highlighted that the price movements of XRP are not significantly affected by Ripple’s actions, as evidenced by long-term investor behavior.
Speculation on the Future Leadership of the SEC
The potential departure of Gary Gensler from the SEC could bring significant changes for XRP and the broader crypto market. The choice of the next SEC Chair under Trump’s administration will be crucial. Attorney John E. Deaton has shared his insights on two potential candidates: Bob Stebbins and Brad Bondi.
Deaton favors Brad Bondi due to his views on decentralized finance (DeFi) and self-custody, stating, “When you take a DeFi protocol and couple it with self-custody, the SEC should have no involvement. There are no implications of securities laws. That is what we need.”
John Reed Stark, a former SEC official, also commented on Bondi’s potential approach to crypto litigation. Stark suggested that Bondi might halt all SEC crypto-related investigations and instruct the litigation unit to pause, settle, or dismiss existing crypto cases.
Amidst these discussions, the price of XRP has shown resilience, recently surpassing $1. With the possibility of Gensler’s resignation and a resolution to the Ripple vs. SEC lawsuit, the cryptocurrency community is watching closely as XRP eyes a potential rise to $2. Currently, XRP is trading around $1.12, reflecting a slight decline of 0.49% over the last 24 hours.
