- Ripple CEO calls for Trump’s action on SEC leadership as Gensler faces scrutiny over hiring practices and alleged political bias.
- Political bias concerns in the SEC spark investigation; Congress demands Gensler’s hiring documents to assess impartiality in the agency.
- Ripple pushes for clarity on crypto regulations, especially on XRP and Ethereum, as Trump vows to reshape SEC leadership.
Gary Gensler, the chair of the SEC, is under investigation just hours after Donald J. Trump won the presidency. Chairs Jim Jordan and Patrick McHenry of the House Committee on the Judiciary have signed a letter raising concerns about Gensler’s hiring procedures.
In order to make sure that Gensler’s employment choices adhere to the impartiality standards set forth in the Civil Service Reform Act, the committee requests papers from the SEC. Market sentiment may be impacted by this inquiry, particularly if political bias in SEC hiring is discovered.
🚨BREAKING: GARY GENSLER UNDER INVESTIGATION HOURS AFTER DONALD J. TRUMP ELECTED PRESIDENT. #XRP pic.twitter.com/RFublSKP62
— Levi | Crypto Crusaders (@LeviRietveld) November 7, 2024
Political Bias Concerns Spark SEC Investigation
The letter, dated September 10, 2024, raises concerns about potential political bias in SEC hiring practices. Allegations suggest that the SEC may have broken federal hiring laws by giving important posts to members of left-leaning organizations.
Jordan and McHenry have requested documents on hiring and internal transfers, especially concerning roles in the SEC Chair’s office. They seek information on any consideration of political ideologies during recruitment or promotion.
The committees demanded these documents by September 24, 2024, to assess compliance with federal hiring regulations. Failure to meet this deadline could intensify scrutiny on the SEC, challenging public trust in the agency’s neutrality.
The CEO of Ripple Demands Urgent SEC Leadership Change
Amid the investigation, Ripple CEO Brad Garlinghouse has publicly urged Trump to replace Gensler swiftly. Trump has previously promised new SEC leadership upon taking office, potentially impacting the regulatory landscape for digital assets. Garlinghouse suggested crypto-friendly candidates such as Chris Giancarlo, Brian Brooks, and Dan Gallagher to replace Gensler.
.@realDonaldTrump, Congratulations!
Some fodder for your first 100-day checklist to get things moving:
– Fire Gensler. Day 1, no delays.
– In his place, appoint Giancarlo, Brooks, or Gallagher – they’d be massive upgrades in rebuilding the rule of law (and reputation) at the…— Brad Garlinghouse (@bgarlinghouse) November 6, 2024
Garlinghouse further encouraged Trump to advocate bipartisan support for the Digital Asset Market Structure Bill. This proposed legislation aims to establish clearer guidelines for cryptocurrency markets, addressing ongoing regulatory ambiguities.
Key Issues: XRP, Ethereum, and Regulatory Clarity
Additionally, Ripple wants to know how Ethereum is classified. Ethereum’s status is still unclear, even though the SEC has classified Bitcoin as a commodity after approving spot Bitcoin ETFs. Even after Ethereum spot ETFs were approved, this ambiguity still exists. Furthermore, the SEC is contesting a 2023 court judgment that said XRP is not a security when it is sold on exchanges.
A victory for Ripple could strengthen arguments against classifying all crypto assets as securities. With mounting pressure, the SEC’s impartiality and regulatory stance could undergo changes under Trump’s administration.
