The U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler could soon step down, a move that might positively impact the ongoing Ripple lawsuit. Recently reelected, pro-crypto President Donald Trump has previously promised to fire Gensler on his “day 1” in office. This has indeed put pressure on the SEC Chair to resign before January 2025 while the XRP case proceedings continue.
Will SEC Chairman Resign This Week?
A notable trend suggests Gensler may follow suit, as past SEC chairs have resigned shortly after opposing presidents won elections. For instance, Mary Jo White announced her resignation just days after Trump was elected in 2016, and Jay Clayton did the same soon after Biden’s victory in 2020.
Time to say Goodbye Gary!
Nov. 8, 2016: Trump elected
Nov. 14, 2016: Mary Jo White (SEC Chair) announces her resignationNov. 3, 2020: Biden elected
Nov. 16, 2020: Jay Clayton announces resignationNov. 5, 2024: Trump elected
Nov. __, 2024: Hey @GaryGensler, we’re waiting— MetaLawMan (@MetaLawMan) November 12, 2024
On Tuesday, November 12, pro-XRP lawyer Joseph Murphy, also known as ‘MetaLawMan’, highlighted this historical trend on X (formerly Twitter). He also sarcastically tagged Gensler and asked him to reveal his resignation plans.
While some question whether Trump can fire Gensler if he doesn’t resign, Murphy clarified, “The Supreme Court has not had occasion to rule on this question because SEC Chairmen have followed tradition and resigned upon change of administrations.”
He added, “But, a few Sup Ct justices, the Harvard Law Review, the Yale Journal of Regulation (and I) believe the President does have the authority to fire the SEC Chairman, if it comes to that.”
Potential Impact on Ripple Lawsuit
Adding fuel to speculation, Gensler’s resignation could have implications for Ripple’s four-year-long battle with the SEC. In the Ripple lawsuit’s appeals phase, the SEC is contesting Judge Analisa Torres’ ruling that XRP token is not a security.
Ripple’s cross-appeal, filed on October 10, further complicates the proceedings. With a shift in leadership, however, some analysts suggest that the SEC’s aggressive crypto enforcement stance might soften.
If Gensler voluntarily resigns, it may pave the way for a more crypto-friendly approach within the SEC and potentially favor Ripple. For the crypto community, Gensler’s possible departure raises hope of a resolution to Ripple’s lengthy legal struggles and signals a possible shift in U.S. crypto policy.
