Crypto stakeholders, including Ripple CEO, raise concerns about Bob Stebbins’ candidacy for the SEC Chairmanship position, citing his past unfavorable regulatory actions.
Investors have been optimistic about the future of the global crypto industry under Donald Trump’s administration. Consequently, many have closely followed the nominations of individuals into top roles, like the SEC and Treasury.
So far, Trump’s transition team has appointed several pro-crypto candidates, including Elon Musk for Head of Department of Government Efficiency (D.O.G.E) and Robert F. Kennedy Jr. as Secretary for Secretary of Health.
However, Trump has not announced who will replace Gary Gensler as the chairperson of the U.S. SEC. As observed over the past years, the federal agency could decide the fate of the crypto industry. As a result, the crypto community advocates for a pro-crypto candidate to become the next SEC chair.
Industry Leaders Criticize Bob Stebbins Candidacy for SEC Chair
Notably, Bob Stebbins, a former SEC General Counsel, has emerged as the major contender for the SEC chair position. This has triggered concerns among crypto stakeholders like Ripple CEO Brad Garlinghouse.
Ripple CEO
The Ripple CEO criticized Stebbins’ potential appointment as SEC chair, suggesting that his direct involvement in William Hinman’s efforts to pick winners and losers in crypto through the 2018 infamous Hinman speech reflects his unethical behavior.
For context, Hinman issued a controversial speech in 2018 at the Yahoo Finance Summit, favoring Ethereum by labeling ETH a non-security while sidelining other crypto assets.
Furthermore, Garllinghouse believes that Stebbins’ appointment would mark the industry’s return to the regulation-by-enforcement era. The current SEC leadership has been criticized for preferring this regulatory approach, which has led to the introduction of several punitive actions against crypto businesses.
Pro-Crypto Lawyer
Notably, Attorney John Deaton, former U.S. Senate Candidate and pro-XRP lawyer, opposed Stebbins’ potential appointment, who he suggested was picked by former SEC Chair Jay Clayton.
The pro-crypto lawyer highlighted Stebbins’ controversial approach to crypto regulation, which includes introducing 80 enforcement actions against crypto businesses and his refusal to declare ETH a non-security as part of efforts to promote regulatory ambiguity.
Interestingly, Deaton tagged the U.S. President-Elect and other pro-crypto appointees, urging them not to make a major mistake by appointing Stebbins for the SEC chairmanship position.
“Picking Stebbins is the opposite of what you claimed you wanted to do related to our federal agencies,” he asserted.
Messari Crypto Founder
Ryan Selkis, the founder of Messari Crypto, also criticized Stebbins’ candidacy for SEC chair, describing him as a securities law maximalist and a ‘no bueno’ for the crypto industry.
In a previous X post, Selkis kicked against implementing the KYC (know-your-customer) requirement for decentralized finance (DeFi), suggesting that this move could destroy the U.S. DeFi space.
He recommended the appointment of former commissioner Paul Atkins and former Binance U.S. CEO Brian Brooks as SEC Chair due to their understanding of the tech.
In the meantime, Trump has not officially announced who would become the next SEC Chair. The U.S. President-Elect promised to support pro-crypto regulations, which could potentially end the SEC’s multi-year enforcement actions against the industry. However, the next SEC Chair will be instrumental in achieving this goal.
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