Ripple CEO urges Trump to fire Gary Gensler on day one of presidency

Ripple CEO Brad Garlinghouse called on Donald Trump to remove SEC Chair Gary Gensler immediately upon taking office. Trump previously promised to appoint a new SEC chairman if he won the election, a goal that was achieved on November 6.

.@realDonaldTrump, Congratulations!

Some fodder for your first 100-day checklist to get things moving:
– Fire Gensler. Day 1, no delays.
– In his place, appoint Giancarlo, Brooks, or Gallagher – they’d be massive upgrades in rebuilding the rule of law (and reputation) at the…

— Brad Garlinghouse (@bgarlinghouse) November 6, 2024

Garlinghouse outlined several priorities for Trump’s first 100 days, including suggesting potential replacements for Gensler such as Chris Giancarlo, Brian Brooks, or Dan Gallagher, citing their crypto-friendly positions and regulatory experience.

The Ripple chief executive also proposed that Trump organize a bipartisan dinner to build support for the Digital Asset Market Structure Bill, which seeks to establish clear regulatory frameworks for digital assets.

Among key regulatory concerns, Garlinghouse asked for clarification on Ethereum’s classification relative to Bitcoin and XRP.

While Gensler has declared Bitcoin a commodity following spot Bitcoin ETF approvals, Ethereum’s status remains undefined even after the SEC approved spot Ethereum ETFs.

For XRP, a landmark court decision in July 2023 stated that XRP is not a security when sold on public exchanges, but this classification faces fresh challenges with the SEC’s appeal of that ruling.

A win for Ripple could reinforce the argument that not all crypto assets should be classified as securities.

Is Hester Peirce poised to replace Gensler?

Hester Peirce, currently an SEC Commissioner, is viewed as a strong candidate for the chair position due to her critical stance on Gensler’s regulatory methods and her support for the crypto industry.

Peirce has repeatedly argued that Gensler’s enforcement-heavy approach leads to misguided and overreaching regulatory actions. She believes that the SEC’s handling of crypto should not be based solely on enforcement actions but should involve clear guidelines.

Despite industry support for her potential chairmanship, Peirce has indicated plans to leave the SEC when her term ends in 2025.