Gary Gensler confirmed he would resign as the US Securities and Exchange Commission (SEC) chairman just before Donald Trump will take his oat of office.
Judging by his controversial reign, Stuart Alderoty, Ripple Labs’ Chief Legal Officer (CLO) has outlined six tasks the next Chairman must address upon taking office.
Stuart Alderoty Breaks Silence on Quest for SEC Chair
In a viral announcement, Gary Gensler said he would leave the commission on January 26. Notably, Gensler’s term as SEC Chairman will expire in 2026.
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Prior to this update, some key crypto stakeholders have even named their preferred candidates for the position.
In an X post, Ripple’s CLO dropped his opinion on the ongoing SEC Chair discourse. He described the recent endorsements for the next SEC Chair as “unsolicited advice.” Alderolty said he trusts the transition team to pick the right candidate to take over from Gensler.
The crypto community has consistently criticized Gensler’s approach towards crypto regulation. Gensler has said his approach is based on treating digital assets like traditional securities.
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However, several high-profile enforcement actions have followed since he embraced the approach. US Rep. Ritchie Torres recently criticized Gensler’s broad application of the securities law to digital assets, saying it stifled industry growth.
Additionally, a former SEC official, John Reed Stark, predicted a reduction in crypto enforcement under the new SEC leadership.
The 6 Key Considerations and Implications
In his post, Alderolty highlighted six key considerations of the duties the next SEC Chair should address.
First, he said the incoming Chair must close all non-fraud crypto cases upon the first day of resuming office. Gary Gensler’s strict stance has targeted crypto companies like Coinbase, Kraken, and ConsenSys.
Secondly, Alderolty said the next Chair should get commitments from Commissioners Peirce and Uyeda to remain on and cooperate with him.
Ripple’s CLO sees the Commissioners’ support as a major push for establishing clear crypto policies. Additionally, Alderolty noted that the next Chair should collaborate with all financial regulators and Congress on clear and simple rules for crypto.
However, he said the SEC should not assume those rules grant it primary jurisdiction over anything.The fourth task is to renounce the 2018 Hinman speech and the 2019 “Framework for Investment Contract Analysis of Digital Assets.”
Furthermore, he noted that the next Chair should create transparency regarding the FOIA process.
The incoming chair’s final duty will be to guarantee accountability and restore public trust. He noted that he could do this by addressing past issues within the SEC and encouraging the Office of Inspector General.
Who Are the Likely Fit for SEC Chair?
Several crypto stakeholders have analyzed likely candidates to replace Gary Gensler as Chair of the U.S. SEC. For instance, crypto lawyer John E. Deaton endorsed Brad Bondi, Global Co-Chair of Investigations and White Collar Defense at Paul Hastings.
Other possible contenders for the prominent role include former SEC Commissioner Paul Atkins, Robinhood’s CLO Dan Gallagher, Dan Gallagher, and Bob Stebbins. These candidates have good regulatory experience and could go further lenient with crypto enforcement.
While everyone is free to nominate a possible replacement for the SEC head, the ultimate decision rests with the next administration.
