- Ripple CEO Brad Garlinghouse has criticized the potential appointment of Caroline Stebbins as SEC Chair, warning it could perpetuate punitive “regulation by enforcement” policies that hinder crypto innovation.
- He remains optimistic about relaxed oversight under President-elect Trump, anticipating a pro-innovation shift in U.S. cryptocurrency regulation.
As the cryptocurrency industry awaits new leadership at the U.S. Securities and Exchange Commission (SEC), Ripple CEO Brad Garlinghouse has raised concerns about the potential appointment of Caroline Stebbins as SEC Chair. His remarks come amid expectations that current SEC Chair Gary Gensler will step down by early January, possibly before President-elect Donald Trump’s inauguration.
A Controversial Candidate
Garlinghouse’s criticism centers on Stebbins’ alleged involvement in past enforcement controversies, particularly regarding William “Bill” Hinman’s contentious regulatory approach during his tenure as the SEC’s Director of Corporation Finance. Hinman’s infamous 2018 speech, which exempted ether (ETH) from being classified as a security while leaving other cryptocurrencies like XRP in regulatory limbo, sparked accusations of favoritism.
Posting on social media platform X, Garlinghouse argued that appointing Stebbins would perpetuate a “regulation by enforcement” era. He likened the move to a regression for crypto innovation, emphasizing the need for leadership that fosters technological progress rather than punitive measures.
Ripple’s Battle with the SEC
The Ripple-SEC legal saga, which began in 2020, remains a cornerstone of the broader crypto regulation debate. The SEC alleges that XRP token sales constitute unregistered securities offerings. Ripple scored a partial victory in 2023 when a judge ruled in its favor on some aspects of the case, but the SEC has appealed the decision, leaving the matter unresolved.
This legal battle has fueled calls for clearer and less punitive regulatory policies, a sentiment echoed by many in the cryptocurrency community. Garlinghouse predicts that the anticipated changes in leadership under President-elect Trump could herald a new era of relaxed oversight and innovation-friendly regulation.
New Leadership, New Opportunities?
With names like Paul Atkins, Dan Gallagher, Brad Bondi, and Bob Stebbins reportedly under consideration for the SEC Chair role, the stakes are high. Atkins and Gallagher are seen as industry-friendly, while Stebbins faces significant opposition from crypto advocates. Meanwhile, SEC Commissioners Hester Peirce and Mark T. Uyeda have also been mentioned as potential contenders.
Garlinghouse remains optimistic about the future, describing Trump as a “crypto president” poised to embrace innovation. He views this transition as an opportunity to break free from restrictive regulatory policies, calling it “a totally new day” for cryptocurrency in the United States.
As the SEC’s leadership transition unfolds, the crypto community watches closely, hoping for a regulatory approach that balances oversight with innovation. Garlinghouse’s plea underscores the industry’s desire for a leader who prioritizes clarity and fairness over enforcement-driven policies.
