XRP Lawsuit Shakeup: SEC’s Gary Gensler to Exit by Year-End, Experts Say

Nov 18, 2024

6thTrade


Speculation over the future of SEC Chairman Gary Gensler is intensifying, with many experts predicting his resignation before the year’s end. Cody Carbone of the Digital Chamber recently suggested on Thinking Crypto that Gensler’s speech in New York may have been a subtle farewell. “I think his days are numbered,” Carbone remarked, forecasting his departure by December 31.

Leadership Transition Imminent

Historically, SEC chairs tend to resign when a new administration from a different party takes office, typically around November or December. With the upcoming presidential inauguration, Gensler is not expected to remain in his position when President-elect Donald Trump assumes office.

Carbone noted, “There’s no illusion that he will be at the SEC on Inauguration Day or that he would accept being demoted to commissioner.” If Gensler steps down, the SEC would likely appoint an acting chair, possibly one of the Republican commissioners, until the new administration officially names a successor.

Ripple vs. SEC: What’s Next?

The SEC’s lawsuit against Ripple Labs, filed in December 2020, alleged that the company raised over $1.3 billion through the sale of unregistered securities via XRP. While a federal judge ruled in 2023 that XRP is not a security when sold to retail investors, the case remains unresolved.

The SEC has appealed the ruling, and the legal battle is expected to continue for months. However, a leadership change at the SEC could potentially provide more clarity or shift the agency’s approach to the case.

Looking Ahead

With Gensler’s departure anticipated by December 31 and a new chair likely to assume leadership in 2025, the XRP community remains hopeful that a change in leadership might bring a more favorable resolution to Ripple’s ongoing legal struggles. For now, the timeline for Gensler’s exit remains uncertain, but all signs point to an imminent transition.