Garlinghouse is a proponent of policies that are crypto-friendly and for the clarification of Ethereum under the new leadership.
Brad Garlinghouse, the CEO of Ripple, urged Donald Trump to promptly remove SEC Chair Gary Gensler upon his inauguration. On November 6, Trump fulfilled his pledge to appoint a new SEC chairman in the event that he won the election.
Garlinghouse proposed several objectives for Trump’s initial 100 days, including the identification of potential successors to Gensler, including Chris Giancarlo, Brian Brooks, and Dan Gallagher, with an emphasis on their regulatory expertise and crypto-friendly stances.
The Ripple CEO also suggested that Trump orchestrate a bipartisan dinner to garner support for the Digital Asset Market Structure Bill, which aims to establish clear regulatory frameworks for digital assets.
Garlinghouse requested clarification regarding Ethereum’s classification in relation to Bitcoin and XRP, which were among his primary regulatory concerns.
Although Gensler has declared Bitcoin a commodity in response to the approval of spot Bitcoin ETFs, Ethereum’s status remains uncertain, despite the SEC’s approval of spot Ethereum ETFs.
In July 2023, a significant court decision determined that XRP is not a security when traded on public exchanges. However, the SEC’s appeal of this ruling has presented new obstacles to this classification.
The argument that not all crypto assets should be classified as securities could be further bolstered by a victory for Ripple.
A strong candidate for the chair position is Hester Peirce, who is presently an SEC Commissioner. This is due to her critical posture on Gensler’s regulatory methods and her support for the crypto industry.
Peirce has consistently contended that Gensler’s enforcement-oriented strategy results in regulatory actions that are both overreaching and misguided. She is of the opinion that the SEC’s approach to cryptocurrency should not be solely determined by enforcement actions, but rather by the implementation of explicit guidelines.
Peirce has expressed her intention to depart the SEC upon the conclusion of her term in 2025, despite the industry’s endorsement of her prospective chairmanship.
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