Gary Gensler’s time as SEC chairman is coming to an end, and the race to find his successor is heating up. With the future of crypto regulation in question, Ripple CEO Brad Garlinghouse has voiced strong concerns about one potential candidate: Robert Stebbins. The stakes are high, and Garlinghouse isn’t alone in his criticism. As the industry faces uncertainty, the appointment of the next SEC chair could shape the future of crypto for years to come.
What does this mean for the market? Keep reading to find out how this leadership decision could impact us all.
Garlinghouse has been outspoken about Stebbins’ past at the SEC, particularly his role in the controversial 2018 speech by former SEC Director William Hinman, which declared Ethereum a non-security. Garlinghouse argues that appointing Stebbins would signal a return to what he calls the “regulation by enforcement era,” a period where the SEC aggressively used enforcement actions rather than clear guidelines to shape the crypto industry.
Ripple’s Chief Legal Officer, Stuart Alderoty, also voiced concerns, suggesting that Stebbins’ leadership would mirror that of former SEC Chair Jay Clayton. Clayton’s tenure was marked by heavy enforcement against crypto companies, and many believe Stebbins would continue this approach, further confusing the industry.
The crypto community is largely skeptical of Stebbins’ candidacy. Many view him as tied to the SEC’s past controversies, particularly regarding perceived favoritism and inconsistent regulation of crypto. Stebbins’ involvement in Hinman’s speech has raised questions about his neutrality as a regulator, with critics like Garlinghouse calling his potential appointment “unconscionable.”
They argue that choosing Stebbins would set back efforts to create clearer, fairer regulations for the crypto industry.
According to former SEC official John Reed Stark, Stebbins personally approved around 80 cryptocurrency-related enforcement actions during his time under Jay Clayton’s leadership. Reports suggest Clayton, recently appointed as Manhattan’s top federal prosecutor, is actively pushing Stebbins’s candidacy for SEC Chair.
Crypto attorney John Deaton has drawn comparisons between Stebbins and Clayton, referring to him as “Clayton 2.0” due to their similar regulatory stances. Deaton warns that appointing Stebbins would be a step backward for the crypto industry, effectively bringing back the aggressive enforcement style that many believe hurt the sector’s growth.
“Choosing Bob Stebbins, especially with Clayton heading the SDNY, is essentially adopting a Clayton 2.0 approach regarding crypto. We’ve been there and done that.”
As Stebbins faces criticism, a new contender is emerging: Dan Gallagher, Robinhood’s Chief Legal Officer. Gallagher has gained significant support, with prediction market Kalshi giving him a 61% chance of being appointed as SEC Chair. Many in the crypto space view Gallagher as a potential shift away from the SEC’s current approach, which has been criticized for stifling innovation with heavy enforcement actions.
Gallagher’s leadership could mark a change toward a more balanced regulatory framework—one that allows the crypto industry to thrive while still protecting investors.
As the battle for the next SEC Chair intensifies, all eyes are on the agency as it decides who will guide the future of crypto regulation.
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