Ripple vs. SEC News: What Happens if Gary Gensler Steps Down?

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Just after the SEC filed an appeal, Ripple’s CLO Stuart Alderoty revealed that Ripple is ready to prove yet again in the appellate court that the lawsuit against Ripple has been irrational and misguided from the start. He also questioned on whether it was a coincidence that the SEC’s enforcement chief, Gurbir Grewal, stepped down just “about an hour before” the filing was made.

Ripple CEO Brad Garlinghouse also commented on the SEC’s appeal, saying that the financial regulator should have “moved on from this case long ago” if SEC Chair Gary Gensler had been rational.

Fred Rispoli in the latest Podcast with ‘Thinking Crypto’ has shed some light on what implications could the next SEC Chair have on crypto.

Will there be a new leadership emerging, fostering innovation in Crypto or will the matter get even worse? Let’s find out what he has to say. 

Gensler, Not the Next SEC Chair?

He remarked that everything could change if a new regime is coming next and noted that Gary Gensler is almost assuredly not going to be the chair no matter who wins the presidency. 

He underscored that who is going to be in there next is going to be a key factor. When he was asked about when the law gives some clarity in the industry about all coins, would the SEC’s appeal be thrown out, he answered that it would, if it’s clear, crystal clear with the legislation.

So if the legislation is passed at the end of this year and it goes into effect January 1, 2025, then the Ripple attorneys would file a notice of supplemental authority to the Second Circuit. And they would say, that this law just passed. He noted that this is how it applies to this case. This is the case ending. The only thing now in front of the court is anything that it’s going to address looking backward. So Ripple could still get punished.  

Also, “the court could still come out with the ruling saying, we reverse judge Torres on programmatic sales. Those were investment contracts at the time. However, as of January 1, 2025, through this legislation from Congress, they no longer are. So this only pertains to everything that happened in the past. And so that’s how that would play out,” he shared. 

Can Ripple and SEC Settle?

And even without a bill being passed, the appellate courts always love it when cases settle without them having to do anything. So he also noted that at any given time, the SEC and Ripple could get together and agree to the terms that they’re both happy with and could withdraw the case from appellate consideration. That’s always a possibility too, but it rarely happens.

He also noted that now that everything is so political, there’s a much higher chance that something like that could happen if there’s a significant regime change at the SEC.

When asked If Trump gets into office, and appoints a republican chair who might consider dropping all this and start working with Congress to get things through, is that an option as well, Fred replied “Yes”, but it is a little debatable about how easily he could fire Gary, demote him, at least to not being chair anymore. 

“Gary Gensler Not Worried In The Slightest”

He shared that Gary Gensler is very loyal to whoever’s giving him the marching orders to be against crypto in every way, shape, or form. He also noted that if things change and the winds change then he could also be the biggest crypto fanboy. 

He noted that Gary is not worried in the slightest. He stressed that the people who are watching this are much more crypto focused and see both government ineptitude and government corruption on the SEC side of it. And there are a lot of other people who he thinks are trying to understand fraud that does go on in the crypto world.

While he thinks that 90% of tokens are either useless and, or scams, the problem is that the SEC is just not going about it in a good faith way as there are players who are trying to do it the right way. And that is why he noted that everybody is so much against them.