Is Gary Gensler on the verge of being fired?
The SEC recently filed an appeal against Judge Torres' ruling in the ongoing SEC vs. Ripple case. Many analysts have already discussed the reasons why this appeal will fail, given the low chance of overturning the original decision. Ripple's chief legal officer Stuart Alderotti noted that the success rate for appeals in similar cases in the past is around 10%, making the SEC's current appeal an uphill battle.
The ongoing appeal in the XRP case has had an impact on the market, after the appeal of the SEC announcement, the price of XRP has decreased significantly. Critics, including Ripple CEO Brad Garlinghouse, argue that the SEC's regulatory approach is harming the industry rather than protecting investors.
Recent meetings at the SEC have sparked growing discontent among former and current commissioners about the agency's direction, with calls for a reassessment of its regulatory strategy. Many are expressing concern about SEC overreach and the unintended consequences of its enforcement action, especially in the case of XRP.
“I don't think the current structure is working very well,” Robert B. Stebbins, chief counsel for the Securities and Exchange Commission, said at a meeting. I don't like the idea that, out of the big picture, the SEC decides that someone in corporate finance is a valuable social good – and you're not, and you're paying for it. I think when you look at just the last 25 years, this is a pretty ugly argument in the Fifth Circuit. Now, we're going to have a new structure. So I think the SEC needs to be careful where they go.
Recent turmoil at the SEC, including the resignation of two attorneys for misconduct, has intensified scrutiny of Gensler's leadership. Amid calls for greater awareness of its actions, some analysts suggest that raising public awareness of the SEC's overreach could lead to accountability.
