- Gary Gensler steps down, replaced by pro-crypto Mark Uyeda as acting SEC Chair.
- SEC appeals Judge Torres’ 2023 ruling on XRP’s non-security status for retail sales.
- Ripple CEO calls SEC’s actions “insanity,” while XRP rallies post-Trump election win.
Gary Gensler, former SEC Chairman, officially stepped down on January 20, ending a nearly four-year tenure marked by aggressive action against the crypto industry. Among the most high-profile cases under his leadership? The ongoing legal battle with Ripple Labs, the entity behind XRP, which started in December 2020. Despite numerous twists and court rulings, the case remains unresolved, casting a long shadow over Ripple’s future.
A New Chair, a New Approach?
Gensler’s resignation coincided with Donald Trump’s return to the White House, where he promptly shook things up, appointing Mark Uyeda as acting SEC Chairman. Known for his pro-crypto stance, Uyeda has openly criticized the SEC’s prior leadership, calling for an end to what he labeled a “war on crypto.”
In November 2024, Uyeda said:
“The Commission’s war on crypto must end, including enforcement actions based solely on a failure to register with no allegation of fraud or harm.”
While the crypto community greeted Uyeda’s appointment with optimism, Ripple supporters shouldn’t celebrate just yet. Legal experts warn that the Ripple v. SEC case is far from over and could drag on, despite hopes of a more crypto-friendly regulatory environment under Trump’s administration.
Ripple Case: A Battle of Attrition
The Ripple v. SEC case saw a fresh development recently, with the SEC filing a brief to overturn Judge Torres’ 2023 ruling, which declared that XRP sales on public exchanges were not securities transactions. Ripple executives didn’t mince words in their response:
- Brad Garlinghouse, Ripple’s CEO, called the filing “insanity.”
- Stuart Alderoty, Ripple’s CLO, dismissed it as “a rehash of failed arguments.”
Alderoty added:
“The SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving.”
Market Reaction and Speculation
XRP’s price rally following Trump’s election has sparked speculation that investors are banking on a more favorable regulatory climate. However, some warn of a potential ‘sell-the-news’ scenario, as Gensler’s departure doesn’t guarantee a swift resolution to Ripple’s legal troubles.
Adding to the uncertainty, Trump nominated Paul Atkins, another crypto-friendly figure, to lead the SEC permanently. For now, Jeremy Hogan, a prominent crypto attorney, expects Uyeda to serve as interim Chair until March or April, when a permanent appointment could reshape the agency’s approach.
The Road Ahead
The lawsuit remains a key flashpoint for Ripple and the broader crypto industry. While Uyeda’s leadership offers a glimmer of hope, the complexity of the case and the SEC’s recent actions underscore that the path forward won’t be easy. In the meantime, XRP’s rally might face turbulence as investors weigh optimism against reality in an ever-evolving regulatory landscape.
