News of Gary Gensler’s resignation is sending shockwaves through the crypto world. The SEC chairman has confirmed that he will step down as chairman of the U.S. Securities and Exchange Commission (SEC) just before Donald Trump is sworn in. This comes after a long

Reflecting on his controversial reign, Stuart Alderoty, Chief Legal Officer (CLO) of Ripple Labs, outlined six tasks the next Chairman must tackle upon taking office.

Stuart Alderoty Breaks Silence on SEC Chairman Search

In a viral announcement, Gary Gensler said he will leave the commission on January 26. Notably, Gensler's term as SEC Chairman expires in 2026.

Prior to this update, some key stakeholders in the crypto space had even named their preferred candidates for the position.

In the post on X, Ripple’s CLO sidelined the ongoing debate over the SEC chairman, calling recent endorsements for the next SEC chairman “unsolicited advice.” Alderolty said he trusts the transition team to pick the right candidate to take over from Gensler.

The cryptocurrency community has repeatedly criticized Gensler’s approach to cryptocurrency regulation, which Gensler says is based on treating digital assets like traditional securities.

However, there have been several high-profile enforcement actions since he adopted this approach. U.S. Representative Ritchie Torres recently criticized Gensler’s broad application of securities laws to digital assets, arguing that it stifles the growth of the industry.

Additionally, a former SEC official, John Reed Stark, has predicted that crypto enforcement will ease under the SEC’s new leadership.

6 Important Considerations and Implications

In his post, Alderolty highlighted six key considerations for the task the next SEC Chairman will need to address.

First, he said the new chairman must close all non-fraud cryptocurrency cases on his first day in office. Gary Gensler’s tough stance has targeted cryptocurrency companies like Coinbase, Kraken, and ConsenSys.

Second, Alderolty said the next Chairman should get a commitment from Commissioners Peirce and Uyeda that they will continue and work with him.

Ripple’s CLO sees the Commissioners’ support as a big boost to establishing clear cryptocurrency policies. Additionally, Alderolty noted that the next Chairman should work with all financial regulators and Congress on clear and simple rules for cryptocurrencies.

However, he said the SEC should not assume that those rules give it primary jurisdiction over anything. The fourth mandate is to repeal the 2018 Hinman speech and the 2019 “Framework for Analyzing Digital Asset Investment Contracts.”

Furthermore, he noted that the next President must create transparency regarding the FOIA process.

The new chairman’s ultimate task will be to ensure accountability and restore public trust. He noted that he can do this by addressing past problems within the SEC and reinforcing the Office of Inspector General.

Who is the best person for the position of SEC Chairman?

Several crypto stakeholders have been analyzing possible candidates to replace Gary Gensler as US SEC Chairman. For example, crypto attorney John E. Deaton has endorsed Brad Bondi, global co-chair of white collar defense and investigations at Paul Hastings.

Other possible candidates for the prominent role include former SEC Commissioner Paul Atkins, Robinhood CLO Dan Gallagher, and Bob Stebbins. These candidates have strong regulatory experience and could be more lenient with cryptocurrency enforcement.

While everyone is free to nominate a replacement for the head of the SEC, the final decision rests with the next administration.