financetom
Cryptocurrency
financetom
/
Cryptocurrency
/
Gary Gensler Officially Out: What Does It Mean for Ripple (XRP)?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Gary Gensler Officially Out: What Does It Mean for Ripple (XRP)?
Jan 21, 2025 9:43 AM

TL;DR

Gary Gensler was replaced with pro-crypto advocate Mark Uyeda. The lawsuit between Ripple and the securities regulator continues, with the XRP army expecting a favorable resolution after the changes at the agencys helm.

Genslers Tenure is Over

Gary Gensler the former Chairman of the US Securities and Exchange Commission (SEC) officially stepped down on January 20. He spent almost four years at the helm, during which the regulator filed countless lawsuits against crypto businesses.

Perhaps the most popular is the legal tussle versus Ripple Labs (the company behind the cryptocurrency XRP). The entities have been at war since December 2020, and despite the numerous developments and court rulings, the case remains ongoing.

Genslers resignation coincided with Donald Trumps return to the White House as Americas 47th President. Upon assuming power, the Republican enforced multiple amendments. Among those was the designation of Mark Uyeda as Genslers successor. 

Uyeda is known as a proponent of balanced regulation that ensures investor protection while avoiding regulatory overreach. He has also presented himself as an advocate of the crypto industry, criticizing the SECs previous leadership for its negative stance on the matter. 

The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm, Uyeda said in November last year.

The crypto community has long desired Genslers resignation and his replacement with someone more open toward the industry. Uyedas appointment might sound like great news, but the XRP army should keep in mind that the final resolution of the lawsuit between Ripple and the SEC is no easy task and could be prolonged in time due to the complexity of the legal process.

Perhaps XRPs recent rally that started after the US elections could be attributed to a large extent to the hopes of a more favorable regulatory landscape in the country during the Trump administration. However, those who have pushed for a quick resolution could be disappointed as Genslers departure doesnt necessarily mean the case is done. As such, the companys native token might correct hard if it turns out that theres a classic sell-the-news event unfolding.

Meanwhile, the American attorney Jeremy Hogan noted that Uyeda will serve as acting Chairman of the securities regulator until the permanent one is confirmed. He expects this to happen in March or April this year.

Not long ago, Trump nominated Paul Atkins to lead the agency. The latter is also considered a proponent of cryptocurrencies but we have yet to see whether the Commission will change its approach once he steps in charge.

Ripple v. SEC: Whats New?

As mentioned above, the lawsuit between the entities has witnessed many developments in the past few months. Most recently, the SEC filed an opening brief requesting the US Court of Appeals to overturn Judge Torres decision from 2023. Back then, the magistrate ruled that XRP sales on public exchanges to retail investors did not constitute securities transactions.

Some of Ripples executives were not pleased with the regulators latest actions. CEO Brad Garlinghouse described the filing as insanity, whereas CLO Stuart Alderoty called it a rehash of already failed arguments that are likely to be abandoned by the next administration. 

We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving, the latter added.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Here’s What Will Drive Bitcoin to $150K After the Halving: Standard Chartered
Here’s What Will Drive Bitcoin to $150K After the Halving: Standard Chartered
Apr 24, 2024
Standard Chartered Bank analyst and head of digital assets research, Geoff Kendrick, believes bitcoin (BTC) will likely trend higher following the halving due to lower leveraged positions in the market. Speaking to BNN Bloomberg during an interview over the weekend, Kendrick said the current market environment, which has lower leverage, could propel the value of BTC upwards toward Standard Chartered’s...
Bitcoin’s Drop to Under $64K Results in Over $200 Million in Liquidations
Bitcoin’s Drop to Under $64K Results in Over $200 Million in Liquidations
Apr 24, 2024
Bitcoins price stood tall above $66,000 for a few days and even challenged $67,000 on a couple of occasions but to no avail. The subsequent rejection brought enhanced pain for the bulls and over-leveraged traders with long positions, as the total value of liquidations on a daily scale has soared to more than $200 million. However, the altcoins also have...
Bitcoin Maximalism Will Rise Over Time, Predicts Balaji
Bitcoin Maximalism Will Rise Over Time, Predicts Balaji
Apr 24, 2024
Balaji Srinivasan – the popular venture investor and Coinbase’s former Chief Technology Officer (CTO) – believes Bitcoin Maximalism is due to gain steam as a philosophical and economic belief system. In a Twitter post on Wednesday, the entrepreneur argued why faith in the existing financial system is bound to erode over time as the U.S. dollar inflation pushes a new...
Bitcoin ETF Outflows Hit $120M as BTC Price Slipped by $4K Daily
Bitcoin ETF Outflows Hit $120M as BTC Price Slipped by $4K Daily
Apr 25, 2024
After a few days of hovering above $66,000, bitcoin (BTC) has dropped to a low of $63,500 amid heightened volatility. Coincidentally (or not), the amount of outflows from the United States spot Bitcoin exchange-traded funds (ETF) market on April 24 hit $120 million. BTC Plunges by 4.5% Data from CoinMarketCap shows that BTC lost roughly 4.5% of its value within...
Copyright 2023-2025 - www.financetom.com All Rights Reserved