Gary Gensler Resigns: Crypto Industry Awaits New Leadership

Gary Gensler Resigns: Ripple Lawsuit Legacy Continues

Gary Gensler Resigns as US SEC Chair Effective January 2025

In a significant announcement, the US Securities and Exchange Commission (SEC) revealed that Gary Gensler would step down as its Chair on January 20, 2025. This coincides with the inauguration of Donald Trump as the 47th president of the United States, marking a politically charged transition at the agency. Gensler confirmed his resignation in an X post, describing his tenure as an “honor of a lifetime.” He extended gratitude to President Biden for entrusting him with the role since April 2021. Gensler’s time at the SEC has been marked by aggressive regulatory actions, particularly in the crypto sector, including high-profile cases like the Ripple lawsuit.

Ripple CLO Suggests Priorities for the Incoming SEC Chair

Stuart Alderoty, Ripple’s Chief Legal Officer, outlined key priorities for selecting the next SEC Chair. Emphasizing the need for a fresh start, he advocated for ending all non-fraud crypto litigation on Day 1, signaling a potential pivot from Gensler’s enforcement-driven approach. Alderoty also suggested retaining Commissioner Mark Uyeda and Hester Peirce, both known for their pro-crypto stances, to foster collaboration within the agency. He stressed the importance of drafting clear and straightforward regulations in coordination with Congress and other financial regulators, offering a stark contrast to the current fragmented regulatory environment.

Calls for Transparency and Accountability at the SEC

Alderoty further urged the transition team to focus on restoring public trust in the SEC by promoting transparency. This includes reforming the Freedom of Information Act (FOIA) process to ensure genuine public access to critical information. Additionally, he called for the incoming Chair to address internal issues by empowering the Office of Inspector General, signaling a push for institutional accountability. Ripple’s legal team also highlighted the need to distance the agency from controversial past stances, such as the 2018 Hinman speech and the 2019 framework on digital assets, which have fueled debates over regulatory clarity.

A Turning Point for the SEC and Crypto Industry

As Gensler prepares to exit, the SEC faces a pivotal moment to redefine its relationship with the evolving crypto industry. The next Chair’s approach will likely shape the regulatory landscape, balancing enforcement with the need for innovation-friendly policies.