Gary Gensler, the controversial head of the U.S. Securities and Exchange Commission (SEC), will step down on January 20, 2025, as announced by the agency recently. Gensler, who was widely criticized by crypto investors during his tenure, will leave just days before a major decision in the SEC’s ongoing legal battle with Ripple, set for January 25, 2025.
However, despite Gensler’s departure, the future of the SEC’s approach to crypto remains uncertain. Bill Morgan, an attorney closely following the case, pointed out that the SEC’s new chief litigation counsel, Jorge Tenreiro, is deeply involved in the Ripple litigation.
Tenreiro, who will be the key lawyer in the SEC v. Ripple case, may continue in this role even after the confirmation of the new SEC commissioner, Paul Atkins. Morgan expressed skepticism about any significant shift in the SEC’s stance on crypto if Tenreiro remains in charge of the litigation.
Morgan warned against assuming that the SEC’s decision not to file its brief in the Ripple case by January 15, 2025, signals a change in approach. He said that Tenreiro would still be handling it. Morgan wrote, “If Tenreiro stays in the new role it will not signal a big change in SEC enforcement policy towards crypto. Even if there is a change the SEC v Ripple Appeal may continue.”
In response, Marc Fagel, a former SEC lawyer, clarified that trial counsel like Tenreiro do not make policy decisions; they handle enforcement actions approved by the SEC’s Commissioners. Fagel asked whether there was any example of a new SEC administration dismissing a pending enforcement action, though he acknowledged that future changes could deviate from past norms.
As the January 2025 appeal deadline approaches, it remains to be seen how the SEC’s leadership transition will impact the outcome of the Ripple case and the agency’s overall approach to the cryptocurrency market.
