Ripple’s Legal Chief Urges SEC Leadership Change as Gensler Faces Pressure

• Ripple’s legal chief calls for Gary Gensler’s voluntary departure amid mounting scrutiny on SEC’s crypto actions.
• Former SEC official John Reed Stark predicts the agency will minimize crypto cases in coming years.
• Legal experts foresee the potential dismissal or settlement of Ripple and Coinbase cases under new SEC leadership.

John Reed Stark, a former U.S. Securities and Exchange Commission (SEC) official, has voiced a critical perspective on the agency’s approach to cryptocurrency enforcement. According to Stark, the SEC may significantly reduce its pursuit of crypto-related cases soon, marking a potential shift in regulatory priorities. “Stick a fork in the SEC, it’s done,” he commented, reflecting his belief that the agency is likely to adopt a more hands-off stance on digital assets moving forward.

In the wake of Stark’s statements, Ripple’s Chief Legal Officer, Stuart Alderoty, has publicly urged SEC Chair Gary Gensler to consider a voluntary exit. Gensler, who has often been the target of criticism from the cryptocurrency sector, faces increasing calls for change from industry leaders. Ripple has been at the forefront of a prolonged legal battle with the SEC over whether its token, XRP, should be classified as a security. Alderoty expressed his discontent with what he described as the SEC’s “anti-crypto” stance, suggesting that Gensler’s departure could pave the way for a more balanced regulatory environment.

Ripple and Coinbase Cases May Face Resolution

The SEC’s internal leadership discussions come as speculation mounts regarding potential changes in its handling of major cryptocurrency cases, particularly those involving Ripple and Coinbase. Legal analyst Jeremy Hogan has shared predictions that, under new SEC leadership, there could be an effort to scale back enforcement actions on non-fraud-related crypto cases. He believes that incoming leadership may prioritize resolving or dropping such cases, potentially easing tensions between the SEC and the crypto industry.

According to Hogan, Ripple’s ongoing case could settle, with a possible judgment amount of $125 million. For Coinbase, a dismissal appears likely, which would mark a significant turn in regulatory efforts directed at the major crypto exchange. Hogan noted that while these changes might not take immediate effect, a resolution is expected by mid-2025.

Gensler’s Tenure and Potential Successors

Gensler’s term as SEC Chair is scheduled to end on June 5, 2025, but insiders suggest he may voluntarily step down earlier, in early 2025. This timeline aligns with speculation around changes in the SEC’s regulatory direction under new leadership. Former SEC Commissioner Dan Gallagher, currently General Counsel at Robinhood, is considered a leading candidate for Gensler’s role, with current Commissioner Hester Peirce expected to step in as interim Chair should Gensler depart. Peirce has been vocal in her support for a more balanced regulatory approach to digital assets, which could shift the agency’s direction significantly.