SEC presidential nominee Stebbins could revive the era of “regulation by enforcement.”

Ripple CEO Brad Garlinghouse has expressed concern over the potential appointment of Bob Stebbins as chairman of the securities regulator.

The industry executive responded to a post on X by crypto researcher “Anders” who described Stebbins as “the old guard candidate for the SEC chair” before adding:

“If Trump really wants to make the US the crypto capital, Stebbins should be out of the question.”

Garlinghouse agreed, commenting that out of a pool of strong candidates for SEC chairmanship, “it’s inconceivable to consider anyone directly involved in Bill Hinman’s unethical (probably illegal) push to pick winners and losers in crypto”.

“Electing Stebbins would be akin to taking us back to the beginning of enforcement-era regulation.”

In a pool of strong candidates for SEC chairmanship, it is inconceivable to consider anyone directly involved in Bill Hinman’s unethical (probably illegal) push to pick crypto winners and losers.

Electing Stebbins would be like going back to the beginning of regulation to…

— Brad Garlinghouse (@bgarlinghouse) November 19, 2024

One step forward, two steps back?

Robert Stebbins is one of several candidates to replace Gary Gensler as head of the SEC under the new administration. During his tenure as the agency’s general counsel, he played a critical role in advising on more than 85 rules and overseeing more than 2,750 enforcement actions, according to the Willkie law firm, with which he is currently partner

He also helped Trump’s SEC chairman Jay Clayton assemble his team when he took office in 2017.

“He literally signed over 80 crypto-related enforcement actions and chose not to declare ETH as a non-security,” said former candidate John Deaton, who advised Donald Trump “not to make the big mistake of ‘choose Stebbins,’ and added:

“Stebbins argued that it is better not to provide clarity and leave it vague to allow the SEC maximum discretion to attack it later. This is disgusting and exemplifies why we need a reformer.”

Messari founder Ryan Selkis said: “A securities law maximalist could get the go-ahead from the SEC, and it’s not good for crypto,” before adding: “We can’t screw it up again “.

I felt good yesterday, and now not so good.

A securities law maximalist could get the go-ahead from the SEC and it’s not good for crypto.

We can’t screw this one up again.

CC: @DonaldJTrumpJr @RobertKennedyJr https://t.co/kXxvizT6oT

— Ryan Selkis (d/acc) (@twobitidiot) November 19, 2024

Best Options

Other potential candidates for the SEC chair include industry favorite Hester Peirce, also known as the “Crypto Mother.” There’s also Robinhood CLO and former commissioner Dan Gallagher and Paul Atkins who were part of the Trump transition team in 2016, who also previously served as SEC commissioners.

Another SEC Commissioner, Mark Uyeda, and former CFTC Chairman Heath Tarbert are also potential outsiders.

Last week, Gary Gensler stood firm on his regulation of enforcement policies, but hinted that he may soon resign.

“Gary Gensler himself has said that ‘democracies have consequences’; this is no exception. His three most recent predecessors resigned within weeks of the election. Gensler should follow suit and announce his plans to resign “Instead, it clings to power, parading on a so-called ‘legacy tour’ as its failures pile up and its credibility crumbles,” the Cedar Innovation Foundation said.

It’s time for Gary Gensler to step down. #ResignationGary pic.twitter.com/1XF2e0lDRQ

— CEDAR Innovation Foundation (@CIFonX) November 18, 2024

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