A New Era for Ripple and Crypto?
Former President Donald Trump has hinted at possible candidates for SEC chairmanship if he wins the November election. On his first day in office, he promised to fire current SEC Chairman Gary Gensler.
In an interview with U.S. Securities and Exchange Commission Commissioner David Lynn, she discussed possible changes to current regulations expected in 2025. She also believes the SEC will rely primarily on enforcement as its primary regulatory mechanism. It is not the right way to design a control system.
While enforcement is important, it should not be the primary tool of a regulatory agency. Unless there is a change in this strategy, don't expect any positive movement in the future. Peers has received many invitations for individuals and companies to register with the SEC, but the lack of real success stories has kept them from participating. This displacement is detrimental to all involved.
Understanding Hester Peirce's Presentation:
She said meaningful improvements can be made regardless of who it's on. The focus should be on identifying issues within the SEC's regulatory jurisdiction and developing effective solutions. The commissioner said that markets often find their own solutions, adding that regulators should remain open to these market-driven approaches.
The commissioner explained the importance of creating rules that balance costs and benefits and regularly evaluating their effectiveness. If laws are not working as intended, they should be reconsidered.
In addition, she said she is concerned about the SEC's recent efforts to expand its powers through enforcement actions, which are necessary to ensure agency governance adheres to the boundaries set by Congress.
In the SEC's ongoing conflict with crypto companies, Gensler has faced heavy criticism. While Ripple CEO Brad Garlinghouse has made strong statements regarding Gensler's tenure, many industry leaders and experts support a leadership change.
