Crypto Firms Push for SEC Reform as Pro-Crypto Administration Takes Office

The recent U.S. election outcomes—Donald Trump’s re-election and a Republican-controlled Senate—have reinvigorated hopes within the crypto industry for meaningful regulatory change. With allies in Washington, crypto firms now see a potential opening to move policy debates out of the courts and into the hands of federal agencies where a more crypto-friendly stance could emerge.

Calling for a “Fresh Perspective” on Digital Assets

Ripple and Coinbase, two prominent players in the industry, are spearheading calls for a revamped SEC approach to digital asset regulation. Ripple, currently embroiled in a lengthy legal battle with the SEC over the classification of its XRP token, views the change in administration as an opportunity to shift the agency’s stance. “The SEC is a bureaucracy, but policy is people, and people is policy. So hopefully, if you change some of the leadership at the SEC, we can start seeing a more rational approach to what they have been pursuing,” Ripple’s chief legal officer Stuart Alderoty told Cointelegraph.

Echoing Alderoty’s sentiment, Coinbase’s chief legal officer, Paul Grewal, made a direct appeal on social media following Trump’s victory, tweeting, “Stop suing crypto.” Both Coinbase and Ripple were among the largest donors to pro-crypto candidates in the election, underscoring their commitment to fostering a regulatory environment that encourages innovation rather than litigation.

Gensler’s SEC: A Lightning Rod for Crypto Controversy

Under the leadership of SEC Chair Gary Gensler, the agency has taken an aggressive approach to regulating digital assets, viewing many as securities subject to federal oversight. This has led to a series of high-profile enforcement actions against crypto firms, including Ripple, which has been locked in litigation with the SEC since 2020. Ripple CEO Brad Garlinghouse previously estimated that the company might spend as much as $200 million in its defense.

For Ripple and others, the SEC’s approach represents a fundamental misalignment with the industry’s needs. Alderoty argues that these cases reflect policy matters that should be resolved through legislation, not litigation. “They [the SEC] have spent an awful lot of time and money bringing enforcement cases based on their strict liability theory that certain crypto assets […] are securities and should be registered with the SEC. That’s not something that should be dealt with in the courts. That’s a policy issue. It’s a legislative issue,” he emphasized.

Will Gensler Remain at the Helm?

One of Trump’s key promises to crypto voters was to oust Gensler, a move that aligns with calls for a more “rational” regulatory stance. While a new administration could lead to a shift in SEC leadership, replacing the chair before Gensler’s term ends in 2026 would require cause and Senate approval for any permanent successor. Speculation has arisen around SEC Commissioner Hester Peirce, affectionately known as “Crypto Mom” for her supportive stance on digital assets. Peirce’s approach has starkly contrasted with Gensler’s enforcement-heavy strategy, and her appointment could signal a shift toward regulatory leniency.

The Future of Crypto Regulation Under a Pro-Crypto Government

Although Gensler has acknowledged that presidents traditionally appoint SEC chairs, a potential leadership shift remains uncertain. However, the recent political shift has invigorated the crypto industry, offering a renewed sense of optimism. With allies in Washington, companies like Ripple and Coinbase hope for a future where policy—not lawsuits—determines the regulatory framework for digital assets.