SEC Faces Major Shift as Gensler’s Leadership Comes Under Fire – Will Crypto Lawsuits Be Dropped?

Former SEC official John Reed Stark has declared that the U.S. Securities and Exchange Commission (SEC) is effectively finished, suggesting that the agency will not pursue many cases in the cryptocurrency space for the foreseeable future.

Stark’s bold statement reflects his belief that the SEC’s influence has waned, particularly under the leadership of Gary Gensler, who has faced strong criticism from the crypto community.

Ripple’s Chief Legal Officer, Stuart Alderoty, echoed the sentiment, calling for Gensler and his team to step down voluntarily. Alderoty warned that, if they don’t, the incoming SEC chair could use internal procedures to oust them.

While Gensler’s term as SEC chair officially ends in June 2025, many anticipate he will resign before then, especially given his growing unpopularity. Despite the rumors, Stark points out that Gensler cannot be dismissed outright, as SEC commissioners serve fixed terms and cannot be removed solely for political reasons.

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Legal experts, including Jeremy Hogan, suggest that once a new SEC chair is appointed, the agency will likely take a different approach to cryptocurrency regulations.

Hogan predicts that ongoing cases, such as the Ripple lawsuit, may be settled, with Ripple potentially paying a $125 million settlement. He also believes that the SEC’s case against Coinbase could be dismissed entirely, with a resolution possibly coming by summer 2025.

Alexander Stefanov