Pro-XRP attorney John Deaton says SEC Chairman Gary Gensler could resign

• Crypto Twitter faced a false rumor of SEC Chairman Gary Gensler resigning from the regulatory agency.
• Pro-XRP attorney John Deaton said that Gensler’s resignation is possible in the near future.
• XRP price climbed over the weekend, sustaining above $0.4810. 

John Deaton, a pro-XRP attorney, addressed the rumors of Securities & Exchange Commission (SEC) Chairman Gary Gensler’s resignation from the agency. While word of Gensler’s resignation is just a rumor which turned to be false, Deaton says there is a likelihood that the SEC Chair resigns soon for political reasons.

The SEC Chair has drawn criticism from crypto market participants, exchange platforms and legal teams defending firms against the financial regulator’s allegations. Binance’s Changpeng Zhao (CZ), Coinbase executives, or Ripple’s CEO Brad Garlinghouse have all criticized the SEC’s recent approach, which they call “regulation by enforcement”.

Also read: Shiba Inu resists selling pressure from sale of 94 billion SHIB tokens by Poly Network hackers

Attorney John Deaton says Gary Gensler could resign for this reason

Attorney John Deaton, an amicus or “friend of the court” in the SEC vs. Ripple lawsuit, believes that SEC Chair Gary Gensler could resign soon. Deaton commented on a widespread rumor on crypto Twitter regarding the agency Chair’s status. 

Deaton’s argument is that the upcoming political campaign could see Gensler’s resignation from the SEC after the agency’s crackdown on cryptocurrency exchanges and projects in the ecosystem. The SEC has been embroiled in a legal battle with Ripple for over two years now.

The financial regulator recently filed lawsuits against Binance and Coinbase, two of the largest exchanges in the crypto ecosystem. In the lawsuit, the regulator labeled nearly five dozen cryptocurrencies being traded on their platforms as “securities”, which would mean that the exchanges were allowing the trading of unregistered securities – a serious offense.

The SEC’s communication team denied the rumor over Gensler’s resignation, Fox business network Charles Gasparino said in a tweet.

It was confirmed that the resignation rumor, which had been spreading over the weekend, is speculation.

What Gensler’s resignation would mean for crypto

Gensler was nominated by US President Joe Biden to serve as Chairman of the US financial regulatory agency SEC, and took office on April 17, 2021. Since then, Gensler has directed and shaped the agency’s approach towards cryptocurrencies, calling for regulation of a sector he described as the “wild wild west.” 

In a recent CNBC interview, former SEC Chairman Jay Clayton expressed his discontentment with Gensler’s approach towards cryptocurrencies. Clayton considers Gensler’s approach as one that is likely stifling businesses in the US and shifting the public’s perception of the regulatory agency’s role in the ecosystem.

Gensler’s resignation could open doors to a different approach towards US-based crypto companies and projects and serve the interests of innovation in the blockchain and crypto sector overall.

SEC vs. Ripple lawsuit update

XRP holders await judgment in the SEC vs. Ripple case. Judge Analisa Torres’ summary judgment in the lawsuit is expected to arrive by September, according to Ripple Labs CEO Brad Garlinghouse. Attorney Fred Rispoli, a pro-XRP lawyer, has predicted a ruling in the SEC vs. Ripple lawsuit by August 10. Rispoli deduced this from the statistics of previous summary judgements by Judge Torres. 

The altcoin has sustained above the $0.4810 level at the time of writing on Monday. XRP holders are waiting and watching the development of the lawsuit and Ripple’s next steps, while the altcoin continues its hopeful, upward trend.

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