Gary Gensler’s tenure as Chairman of the United States Securities and Exchange Commission (SEC) has ended, resulting in enthusiasm within the crypto community. Gensler’s departure is seen as a significant development, particularly for Ripple, which was entangled in a high-profile lawsuit with the SEC over the regulatory status of Ripple’s XRP coin.
Even Ripple’s Chief Legal Officer, Stuart Alderoty, celebrated Gary Gensler’s resignation as SEC Chairman with a mocking statement on X (formerly Twitter). He tweeted that the only suitable response to mentioning Gensler’s name would be “Gary who?” showing the strained relationship between Ripple and Gensler’s SEC.
The crypto market is now awaiting the arrival of Mark Uyeda, the new SEC chair, who is expected to bring a more crypto-friendly approach to regulation. Surprisingly, President Trump had earlier announced that a different congressman would assume office. Nonetheless, Uyeda has been a vocal crypto industry advocate and even labeled Gensler’s approach towards digital assets “a disaster.”
What’s Next?
The latest developments in the SEC and U.S. political systems could create a more favorable environment for crypto companies. However, while mentioning the agenda his government would accomplish, President Donald Trump did not mention anything crypto-related during his inauguration speech.
If the new U.S. administration becomes pro-crypto as expected, more crypto exchange-traded funds (ETFs) could be approved in addition to the existing ones (BTC and ETH ETFs). Analysts predict that the probability of an XRP ETF approval in 2025 is as high as 66%, which could lead to more inflows. This optimism is reflected in XRP’s recent price surge.
While most crypto users see Gensler’s departure as a positive development, some firms have received warnings from the SEC about potential enforcement actions even after Gensler tendered his resignation. This suggests that the possibility of the SEC continuing a tough stance, even under new leadership, should not be entirely ruled out.
Despite these uncertainties, industry players are cautiously optimistic about the future of crypto regulations. An example is Tether, the issuer of the world’s largest stablecoin, USDT. The company is proceeding cautiously in its U.S. expansion plans, citing a lack of clear regulatory guidance, which must be attained before it makes significant moves in the U.S.
