United States president-elect, Donald Trump, might have a lot on his plate regarding overhauling the Securities and Exchange Commission (SEC) upon taking office next year. The Republican president stated severally during his campaign that he plans to make America a very crypto-friendly nation starting by removing SEC chair Gary Gensler from office. However, achieving this might not be easy.
The XRP community particularly rallied behind Trump because of these bold promises as the SEC’s litigation against Ripple Labs has been a major factor in the suppression of the price trajectory of the coin. The SEC charged Ripple to court in December 2020 accusing the blockchain company of offering unregistered security in XRP to investors.
Nevertheless, the case has taken several turns as the court recently declared that XRP in itself is not a security, but the offering of XRP by Ripple to institutional investors qualifies as a security. While the crypto community expects Trump to fire Gensler, industry experts have pointed out that it might be impossible for this to happen without taking him to court.
Read Also: Senator Lummis Suggests SEC Chair Gensler Could Step Down If Trump Wins 2024 Election
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Trump and Gensler Might Go to Court
Recently, a discussion ensued on X (formerly Twitter) regarding the possibility of President Trump firing Gensler from office and several experts gave their opinion. Pro crypto lawyer, MetaLawMan on X, started by citing historical patterns of SEC chairmen resigning from office during a change of administration, suggesting that Gensler is expected to leave voluntarily.
However, it is worth mentioning that resignation from office is a matter of choice and not a legal requirement. Thus, another user questioned if Trump can legally remove Gensler from office if he refuses to step down. MetaLawMan explained that the Supreme Court had never ruled on this question because previous SEC chairmen have always resigned traditionally upon change of administration. He noted, however, that the President does not have the authority to sack the SEC chairman if it comes to that.
Fox Business journalist, Eleanor Terrett, buttressed the point, stating that the only way Trump would forcefully remove Gensler from office is by taking him to court. This might force both parties into a lengthy and expensive legal battle if it is attempted.
President Trump might have to present valid claims in court as to why Gensler should be removed from Office. These claims might include his overreach in the crypto industry and regulatory uncertainty surrounding the sector. However, proving these claims would require substantial evidence.
Expensive Legal Fees
Eleanor Terret continued by pointing out the cost of going to court. She noted that going through this route could be very expensive and would require Gensler to pay for legal fees “out of his own pocket.” Moreover, she added that Gensler might not be the only one to go through this ordeal, recalling that Federal Reserve Chair Jerome Powell had said he would not step down from office even if he was ordered by Trump. If Trump decides to take both of them to court, “It’ll be an expensive battle to stay,” Terret said.
While Trump has made bold promises about reshaping the SEC and possibly removing chair Gary Gensler to create a more crypto-friendly environment, this plan faces legal and procedural challenges. Any attempt to forcibly remove Gensler would likely lead to a prolonged and costly legal battle, as a Supreme Court ruling on a president’s power to dismiss an SEC chair has yet to be established.
Read Also: Jeremy Hogan Foresees Major Changes in SEC Crypto Cases as Gensler’s Tenure May End by 2025
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.