REGULATION

Turning Point? SEC Acting Chairman Appointed, Ripple Coin Rebounds 30% from Bottom

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Turning Point? SEC Acting Chairman Appointed, Ripple Coin Rebounds 30% from Bottom

Recently, the cryptocurrency market has been shrouded in regulatory uncertainty in the United States Securities and Exchange Commission (SEC)'s lawsuit against XRP. With SEC Chairman Jay Clayton announcing his resignation on the evening of the 23rd, a new chairman has emerged, with Elad Roisman, who is considered crypto-friendly, set to take over.

Generally Seen as Regulatory Positive

The news was first revealed on Twitter by SEC Commissioner Hester Peirce, who is known as "Crypto Mom" for being friendly towards the crypto industry, expressing great anticipation for Elad Roisman's leadership at the SEC.

It is understood that Roisman was nominated by Trump in 2018 to become one of the SEC commissioners. He previously served as a legal advisor to the U.S. Senate Banking Committee and the New York Stock Exchange's parent company, Intercontinental Exchange (ICE), which ultimately acquired the bitcoin futures platform Bakkt in 2012.

The crypto community generally welcomes the arrival of the new chairman, seeing it as a positive development. In 2018, Roisman expressed his views on blockchain and ICO fundraising, stating:

"The SEC must address these challenges in a fair and transparent manner, and in order to adapt to this rapidly evolving field, we should review relevant regulations. We must provide clear information to investors and rigorously enforce regulations that require operators to take responsibility."

However, Roisman's actual term is still unknown, as neither the SEC nor the White House has officially announced a statement. Roisman may only be serving as acting chairman in the final weeks of the Trump administration.

Leading the SEC in the Ripple Lawsuit

Cryptocurrency regulation is currently at a critical juncture with the Ripple lawsuit. After the SEC sued Ripple for allegedly selling $1.3 billion in unregistered securities on the 23rd, the community has turned its attention to the future of the fourth-largest cryptocurrency by market capitalization.

XRP hit its lowest point this week on the 24th, plummeting 40% in price. Various negative news emerged, including small exchanges delisting XRP, top market maker institutions claiming to no longer provide liquidity for XRP, and cryptocurrency asset management company Bitwise removing XRP from its cryptocurrency index fund.

However, the arrival of Roisman may bring a turning point and also serve as a morale booster for XRP holders. As of now, XRP has rebounded by nearly 30%, returning to the $0.33 level.

Contrary Opinion: Change in Chairman Does Not Affect Lawsuit

Compound legal advisor Jake Chervinsky stated that even with a change in SEC chairmanship to Elad Roisman, it would not affect the lawsuit against Ripple, the parent company of XRP.

He believes that SEC Commissioner and "Crypto Mom" Hester Peirce has previously shown a tendency to dissent in enforcement actions, such as in similar cases like Kik. However, this time she has apparently not voiced support. Chervinsky believes that aside from Peirce, no one at the SEC would vote against enforcement in cryptocurrency cases.

Therefore, he thinks that even without former chairman Jay Clayton, other SEC commissioners would still vote in favor of enforcement actions. Moreover, focusing on the SEC chairman is a mistake, as Jay Clayton was not among the plaintiffs in the Ripple case, but rather other senior officials and teams who will definitely continue the case.