Will Trump’s SEC Close The Ripple Case? Coinbase CLO Speaks Out

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As a seasoned crypto investor with a keen eye for regulatory trends and a portfolio that mirrors the crypto market’s volatility, I am cautiously optimistic about the potential changes under Trump’s administration. The prospect of a pro-crypto SEC chair like Commissioner Hester Peirce could indeed signal a fresh start for the industry, and I believe it’s high time for the SEC to stop suing crypto and start talking to us instead.

Following Donald Trump’s election as US President, influential figures in the cryptocurrency sector, such as Ripple and Coinbase, are preparing for potential changes in regulations. Trump has made it clear that he supports cryptocurrencies and intends to replace Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), on his first day in office. This potential change could result in a major overhaul of how the SEC addresses ongoing crypto-related cases, including those involving companies like Coinbase and Ripple.

Will Trump’s SEC End The Coinbase And Ripple Cases?

As an analyst, considering the possibility of Trump appointing a crypto-friendly chair for the Securities and Exchange Commission (SEC), perhaps someone like Commissioner Hester Peirce, prompts me to ponder about the direction that the SEC’s ongoing enforcement actions might take. FOX Business journalist Eleanor Terrett reached out to Paul Grewal, Coinbase’s Chief Legal Officer, for his perspective on these potential shifts in regulatory landscape.

In simpler terms, Grewal stated that he expects the new administration to reevaluate all the cryptocurrency cases that were handled by Gary Gensler, distinguishing between those that appear to be clear-cut scams or fraud, and those that do not fall under this category.

While Grewal did not guarantee that the lawsuits against Coinbase and Ripple would be dropped, he appeared optimistic that new management and clarified regulations would lead to a reconsideration. In other words, while Grewal didn’t say he thought the lawsuits against Coinbase and other companies accused of securities violations would be withdrawn, he seemed hopeful that changes in leadership and clearer guidelines would warrant a new perspective on these cases.

Significantly, Grewal voiced his thoughts on X: “I believe the SEC has grasped what transpired tonight. On numerous matters, the public’s voice was resoundingly clear – they desire change. Cryptocurrency is no exception. Cease legal actions against cryptocurrency. Engage in dialogue instead. Begin rulemaking immediately. There’s no need to delay.

In his own words, Coinbase CEO Brian Armstrong characterized the recent election as a significant triumph for cryptocurrency. He pointed out that crypto endorsement was instrumental in Bernie Moreno’s victory against Senator Sherrod Brown in Ohio, emphasizing that Brown had been one of the most vocal opponents of cryptocurrency in the Senate. Furthermore, Armstrong indicated that the pro-cryptocurrency stance of the elected presidential candidate and the election of 257 pro-crypto representatives in the House indicate a positive trend towards cryptocurrencies within Congress.

Armstrong argued that the nation has decisively rejected the efforts of Senator Warren and Gary Gensler, who for years attempted to illegally suppress our cryptocurrency sector. He implied that being against crypto could potentially harm one’s career, as it contradicts voters who are dissatisfied with the existing financial system and seek change.

In a similar vein, Ripple’s leadership expressed comparable viewpoints. CEO Brad Garlinghouse, avoiding comments on the ongoing case with the SEC, commended Trump’s victory and outlined a to-do list for the new administration within the first 100 days, as reported by Bitcoinist on Wednesday. He strongly suggested Trump to act swiftly in dismissing Gensler and appoint individuals like Chris Giancarlo, Brian Brooks, or Dan Gallagher instead. According to him, these replacements would significantly improve the rule of law (and SEC’s reputation).

Garlinghouse urged both political parties to collaborate on moving forward with the digital asset market structure bill in the Senate, and he asked for regulatory guidance regarding cryptocurrencies. He inquired, “Could we possibly get some clarity like XRP and BTC, clarifying that Ethereum is not considered a security, correct?!

At press time, XRP traded at $0.55.

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2024-11-07 20:14