Will Trump's SEC End The Coinbase And Ripple Cases?

The prospect of Trump appointing a crypto-friendly SEC chair—potentially someone like Commissioner Hester Peirce—raises questions about the future of the SEC's current enforcement actions.

Following Donald Trump’s victory in the US presidential election, crypto industry giants like Ripple and Coinbase are expecting major shifts in regulation.

Trump has shown support for crypto and has stated his intention to fire Securities and Exchange Commission (SEC) Chair Gary Gensler “on day one” of his administration. This move could drastically alter how the SEC handles ongoing crypto cases, including those against major companies like Coinbase and Ripple.

Will Trump’s SEC Drop The Coinbase And Ripple Cases?

With the prospect of Trump appointing an SEC chair who is favorable towards crypto—potentially someone like Commissioner Hester Peirce—there is speculation about what will happen to the SEC’s current enforcement actions.

FOX Business journalist Eleanor Terrett spoke with Coinbase’s Chief Legal Officer, Paul Grewal, to gain insights into these potential changes.

“I think the new administration will take a fresh look at all the pending crypto cases brought under Gary Gensler and decide which ones are targeting clear scams and fraud and which ones are not,” Grewal told Terrett.

While Grewal did not explicitly state that he believes the cases against Coinbase and Ripple will be dropped, he expressed confidence that new leadership and clearer regulations will prompt a reevaluation.

“Grewal stopped short of saying he believed the cases against Coinbase and others under fire for alleged securities violations would be withdrawn but seemed confident a change at the top and clear rules will warrant a fresh pair of eyes,” explained Terrett.

Interestingly, Grewal also took to Twitter to share his thoughts: “I hope SEC realizes what occurred tonight. On many, many issues, the voters said loud and clear that they want change. Crypto is no exception. Stop suing crypto. Start talking to crypto. Initiate rulemaking now. There’s no need to wait.”

Coinbase CEO Brian Armstrong also commented on the election, describing it as “a huge win for crypto.” He highlighted that crypto support played a key role in Bernie Moreno’s victory over Senator Sherrod Brown in Ohio, noting that Brown was “one of the most anti-crypto senators out there.” Armstrong added that the “full-throated support of the winning presidential candidate” and the election of 257 pro-crypto candidates in the House signal a pro-crypto shift in Congress.

Armstrong stated that the country has “completely disavowed the work of Senator Warren and Gary Gensler, who attempted for years to unlawfully destroy our industry.” He suggested that being anti-crypto is now “a good way to end your career,” as it doesn’t align with voters who are “disaffected by the current financial system and want change.”

Ripple’s leadership also expressed similar sentiments. CEO Brad Garlinghouse, while avoiding discussion of the ongoing lawsuit with the SEC, praised Trump’s victory and outlined a first 100-day checklist for the new administration, as reported by Bitcoinist on Wednesday. He urged Trump to swiftly “fire Gensler” and to appoint replacements like Chris Giancarlo, Brian Brooks, or Dan Gallagher, who he believes would be “massive upgrades in rebuilding the rule of law (and reputation) at the SEC.”

Garlinghouse also called for bipartisan efforts to advance the digital asset market structure bill in the Senate and sought regulatory clarity on cryptocurrencies. He asked, “Can we get some clarity… similar to XRP and BTC, that ETH is not a security, right?!”

At press time, XRP is trading at $0.55.