Regulation
Ripple CEO Brad Garlinghouse Criticizes US SEC Chair Candidate Bob Stebbins
Ripple CEO Brad Garlinghouse has raised concerns over Bob Stebbins, a key contender for the position of U.S. SEC Chair.
Bob Stebbins, a former SEC General Counsel, has faced criticism from cryptocurrency leaders for his involvement in past regulatory decisions that many view as unfavorable to the industry.
Ripple CEO Brad Garlinghouse Take On Stebbins’ Candidacy
Ripple CEO Brad Garlinghouse has voiced his opposition to Stebbins on social media, stating it would be “unconscionable” to appoint someone tied to controversial SEC practices. He referenced Stebbins’ alleged role in crafting the Ethereum speech in 2018, which classified Ethereum as a non-security while ignoring concerns from other crypto companies.
Brad Garlinghouse emphasized the need for regulatory fairness, pointing out the SEC’s history of “picking winners and losers” in the cryptocurrency space.
This criticism comes as the crypto industry watches closely to see if the next US SEC Chair will adopt a more balanced approach ahead of Gary Gensler potential step down. Many advocates, including Brad Garlinghouse, have repeatedly called for a leader who prioritizes clarity and fairness in regulations rather than continuing enforcement-focused measures.
Ripple’s Legal Officer Shares Stance
Stuart Alderoty, Ripple’s Chief Legal Officer, also shared his reservations about Stebbins’ candidacy. In a recent statement, Alderoty suggested that Stebbins’ involvement in past SEC decisions could undermine efforts to promote regulatory transparency.
He alluded to Stebbins’ connection with former SEC Chair Jay Clayton, who initiated the lawsuit against Ripple in December 2020. The Ripple CLO has also slammed the outgoing US SEC chair Gary Gensler for trying to justify the lawsuits under Jay Clayton
Concurrently, Pro XRP lawyer John Deaton added to the concerns, calling Stebbins “Clayton 2.0” and warning of a possible continuation of the SEC’s aggressive stance toward digital assets. Critics argue that appointing Stebbins could stifle innovation and push U.S. crypto firms to relocate abroad. Moreover, Deaton had earlier picked his favourite for the US SEC chair being Brand Bondi.
Bob Stebbins’ Record on Crypto Regulation
Bob Stebbins’ record at the SEC has sparked widespread debate in the cryptocurrency sector. During his tenure, he reportedly approved approximately 80 cryptocurrency enforcement actions, many of which targeted U.S.-based companies. Advocates for the crypto industry have long criticized such actions as inconsistent and overly punitive.
Stebbins has also been linked to regulatory decisions that favored certain crypto assets while subjecting others to lawsuits. This perceived inconsistency has fueled fears among industry leaders like Brad Garlinghouse that his leadership could perpetuate the current challenges in regulatory clarity. Moreover, he had also signed off on the Ripple lawsuit adding to the increasing concerns about his stance on crypto regulation.
However, although Bob Stebbins is seen as a strong contender, the Biden administration is reportedly evaluating other candidates. Names such as Dan Gallagher, Paul Atkins, Richard Farley, and current US SEC Commissioner Mark Uyeda have been mentioned as potential options.
Ripple CEO Brad Garlinghouse has expressed hope that the next SEC Chair will support innovation while ensuring fair treatment for companies like Ripple, Coinbase, and Circle.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Coinbase CEO Brian Armstrong is set to meet with President-elect Donald Trump as the latter continues to fill key positions in his incoming administration. The meeting is expected to address personnel appointments, particularly for roles tied to cryptocurrency and financial regulation.
Coinbase CEO To Meet Donald Trump
According to The Wall Street Journal, Brian Armstrong will meet privately with Donald Trump to discuss staffing decisions for critical positions. These roles are likely to influence cryptocurrency policy in the United States.
While Armstrong has not donated to Trump’s 2024 presidential campaign or supporting political action committees, he previously stated that Coinbase would be ready to work with a Trump administration.
The meeting comes at a time when Trump is actively shaping his cabinet and administration. Brian Armstrong’s participation aligns with Trump’s reported intention to establish a “Bitcoin and crypto presidential advisory council” within his first 100 days in office. This proposed council would aim to develop regulatory clarity for the digital asset industry.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Pro-XRP lawyer Jeremy Hogan has provided insights into the potential timeline for the approval of an XRP exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
In a recent post on X (formerly Twitter), Hogan stated that the average timeframe for ETF approval ranges from six to twelve months. Based on this estimate, a decision on the XRP ETF application could be expected by mid-2025 if the SEC’s ongoing appeal process proceeds as anticipated.
XRP ETF: Pro-XRP Lawyer Provides Timeline
Pro-XRP lawyer Jeremy Hogan ’s comments follow Bitwise Asset Management’s October filing for an XRP ETF with the SEC. The application, which cites the SEC as a primary risk factor for investors, remains under review. Jeremy Hogan highlighted that ETF applications typically follow a predictable timeline, with approval or denial usually occurring within a year. He noted that the pending SEC appeal, tied to the Ripple case, will likely influence this process.
The US SEC’s appeal stems from its legal battle against Ripple Labs, where a U.S. court ruled that XRP sales to institutional investors violated securities laws, but secondary market sales did not.
The appeal, which challenges parts of this ruling, is set for review in January 2025. Jeremy Hogan emphasized that the timeline for ETF approval depends heavily on the resolution of this appeal, stating, “We are probably looking at some time next summer, assuming things go as expected with the appeal.”
Bitwise CIO Matt Hougan Stance on Approval
Just like Pro-XRP lawyer Jeremy Hogan, Bitwise Chief Investment Officer Matt Hougan has stated that the company’s filing reflects its confidence in XRP’s potential. He said that the firm files applications only when there is a viable path to approval
Matt Hougan noted that the ETF aims to capitalize on XRP’s strong community support and technological foundation, despite the challenges posed by the US SEC lawsuit.
Other firms, including Canary Capital and 21Shares, have followed Bitwise’s lead by filing similar ETF applications.
Ripple Defendants See Legal Victory
The ongoing legal dispute between the SEC and Ripple Labs continues to shape the regulatory landscape for XRP. In a recent development, the court issued an order in favor of Ripple Labs, XRP II LLC, and Ripple CEO Brad Garlinghouse. This ruling adds to Ripple’s growing momentum following earlier partial victories.
The initial lawsuit, filed by the US SEC in December 2020, alleged that Ripple conducted unregistered securities offerings through XRP sales. The case caused a significant decline in XRP’s market capitalization, which fell from over $140 billion to under $10 billion shortly after the complaint.
However, Ripple’s recent legal successes have contributed to a resurgence in XRP’s market activity and investor confidence. Moreover, speculation about a shift in U.S. regulatory policies has fueled optimism within the cryptocurrency sector. With President-elect Donald Trump signaling intentions to replace SEC Chair Gary Gensler, market participants expect a more crypto-friendly regulatory environment. Moreover, there have rumours Gary Gensler may resign on his own soon.
Amid these moves, crypto analysts have predicted the XRP price may see a parabolic rally after hitting a 3-year high. At press time, XRP was trading at $1.14, a 7.28%surge from the intra day low.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Gary Gensler’s recent speech at the Annual Institute on Securities Regulation event indicates that he may expect to be out of office soon.
- This follows a pattern of SEC Chairs resigning following a change in administration.
At the PLI’s 56th Annual Institute on Securities Regulation program, held on Nov. 14, Gary Gensler’s speech hinted at his nearing the end of his term as the SEC Chairman. This comes as speculation points to incoming President Donald Trump removing him from office.
Under Gary Gensler’s leadership, the SEC has adopted a regulation-by-enforcement model, which includes hazy regulations around cryptocurrency followed by enforcement actions against exchanges and protocols that default.
During his speech, Gensler referred to his job in the past tense as one of Trump’s campaign promises to the crypto industry was to fire Gary Gensler “on day one” of his presidential term.
Gensler’s crypto enforcement record
Gensler’s SEC has some notable cases against various crypto firms, the top being Ripple, Coinbase, Uniswap, and ConsenSys.
The agency’s multi-year lawsuit against Ripple Labs ended in a partial loss as a US Judge ruled XRP is not a security. However, this ruling only applies to XRP’s public sales, not its institution ones for which the company was fined $125 million.
Despite the partial victory, the ruling was counted as more of a loss for the SEC as it set a precedence for other cryptocurrencies with similar public sales being non-securities, a development that would unwind the SEC’s regulation by enforcement.
On the other hand, Gensler’s SEC has scored some victories in its pursuit of defaulting crypto exchanges as the agency won a case against Bittrex in August 2023. The exchange was fined $24 million for violating US securities laws and has since ceased its operations within the US due to regulatory uncertainties.
Gensler also pursued cases against crypto industry giants like Coinbase, Binance, ConsenSys, and even decentralised platforms like Uniswap; some of which are still ongoing.
Regulatory obscurity under Gensler
Obscure crypto regulations have characterized Gensler’s term. The SEC’s regulation-by-enforcement regime, which was predominant in 2023 but spilt over into 2024, created an uncertain regulatory environment that left exchanges in the dark about the rules surrounding crypto listings.
Exchanges like Coinbase demanded regulatory clarity and firms like ConsenSys sued the SEC for clarification on Ethereum’s status as a security after the agency served the blockchain infrastructure provider a Wells Notice for violating securities laws through its MetaMask product.
In an interview with CNBC in 2022, Gensler revealed that he believed most cryptocurrencies are securities and should be regulated as such. However, his agency failed to provide clear regulations for crypto companies and exchanges to follow. Instead, Gensler insisted that there’d been clarity for years.
While Gensler affirmed Bitcoin is not a security, the verdict was out for several other major cryptos, Ethereum in particular being a point of contention.
Coinbase has an active lawsuit against the SEC and is pushing for a court ruling to obtain crucial crypto policy documents regarding the SEC’s crypto regulations and its findings from investigations into Ethereum as a security.
The SEC is delaying the document release citing a three-year review period.
Meanwhile, Gary Gensler faces lawsuits from a coalition of 18 US States citing gross government overreach in his regulation of digital assets.
Whether or not Gensler approaches the end of his role as the SEC Chairman, the consensus seems to be that his approach to crypto regulation leaves much to be desired. As the SEC Commissioner, Mark Uyeda, said on Fox Business Morning in October 2024, “I think our policies and our approach over the last several years have been just really a disaster for the whole industry.”
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