The outcome of the 2024 U.S. presidential election will have major implications for the cryptocurrency industry, particularly in the ongoing legal battle between Ripple and the SEC. Now that Donald Trump has won, there’s a growing expectation that the crypto landscape might see shifts, including the potential end of the SEC’s aggressive stance on cryptocurrencies. This shift could bring much-needed clarity to the industry and potentially resolve the long-running dispute between Ripple and the SEC.
Trump’s Potential Return and Its Impact on the SEC
As part of his 2024 campaign, Donald Trump made a bold promise: on his first day back in office, he would fire SEC Chair Gary Gensler. Gensler has been a contentious figure in the crypto industry due to his aggressive enforcement actions against digital assets. Trump’s pledge to replace Gensler with someone more supportive of cryptocurrencies could mark a turning point for the industry.
While Gensler’s term as SEC chair technically runs until June 2026, it is possible that Trump could replace him in the role of chair while allowing him to remain as a commissioner. This would allow for a smoother transition and a shift in the SEC’s approach toward crypto, especially with a new leadership team in charge.
Court Deadline Looms for the SEC
While the political shift in Washington is significant, legal deadlines are also adding pressure to the SEC. The U.S. Court of Appeals for the Second Circuit has given the SEC a firm deadline to present its final arguments in the Ripple case by January 15, 2025. The court will then decide whether to dismiss the case or proceed with certain aspects of it.
This deadline aligns closely with the timeline for Gensler’s potential dismissal and could play a crucial role in determining the future of the case. How the SEC handles this deadline and whether a change in leadership occurs could have a major impact on the case’s outcome.
