With Donald Trump’s re-election and a Republican Senate majority, cryptocurrency firms are ramping up efforts to advocate for regulatory reforms and a shift in leadership at the U.S. Securities and Exchange Commission (SEC). Industry leaders are calling for a more balanced approach to digital asset policies, moving decision-making away from courts and into clearer legislative frameworks.
Ripple, a leading blockchain company that has been entangled in a legal battle with the SEC since 2020, hopes the new administration will foster change. Stuart Alderoty, Ripple’s chief legal officer, emphasized the need for a shift in leadership at the SEC to bring more rationality to the agency’s actions. “The SEC is a bureaucracy, but policy is shaped by people, and changing leadership can lead to more balanced policy decisions,” he stated.
Coinbase, another major crypto company, echoed these sentiments. Following Trump’s victory, Coinbase’s chief legal officer, Paul Grewal, urged the SEC to halt its legal actions against crypto firms. Both Coinbase and Ripple were among the largest donors to pro-crypto candidates in the 2024 election.
The push for reforms comes after years of enforcement actions under SEC Chair Gary Gensler, who has taken a hardline stance on classifying many digital assets as securities. Ripple CEO Brad Garlinghouse previously revealed that the company has spent nearly $200 million defending itself against the SEC’s claims regarding its native token, XRP. Ripple argues that such disputes should be resolved through legislation rather than in courts.
“They have spent significant time and resources pursuing enforcement cases based on the premise that certain crypto assets are securities. This is not something to be decided in court—it’s a policy issue that requires legislative action,” Alderoty explained.
One of Trump’s campaign pledges included removing Gensler from his position as SEC Chair. While the president-elect can initiate the process, removing an SEC Chair requires cause, and any replacement would need Senate confirmation. Gensler’s term is currently set to end in 2026.
Hester Peirce, an SEC Commissioner known for her crypto-friendly stance, is widely speculated to be a potential replacement. Nicknamed “Crypto Mom,” Peirce has consistently opposed aggressive enforcement actions and advocated for clearer guidelines that support innovation in the crypto industry.
Although the future of SEC leadership remains uncertain, Gensler recently acknowledged that new leadership may be on the horizon. “Traditionally, presidents decide who chairs the SEC, and that’s part of the democratic process,” he stated in a recent interview.
The crypto industry is optimistic that these political shifts will pave the way for constructive dialogue and clearer regulatory frameworks, helping the U.S. regain its competitive edge in the global digital asset market.
Disclaimer: The information provided on CoinsLately is for informational and educational purposes only. CoinsLately does not provide investment, financial, or legal advice. The content on this site represents the opinions and views of the authors and should not be considered as professional financial advice.
Cryptocurrency investments are highly speculative and involve substantial risk. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. CoinsLately and its authors are not responsible for any financial losses or damages incurred as a result of the information provided on this site.
