James Murphy Criticizes SEC Over Using ‘Digital Asset Securities’ Yet Again

With a most anticipated Trump win in the US elections this season, there are high expectations of clear regulatory policies for crypto under Trump, as he had voiced similar sentiments during his campaigns including Gary Gensler’s exit and the establishment of a strategic Bitcoin reserve. 

However, recently, Gary Gensler in a PLI’s 56th Annual Institute speech last week, restated that Bitcoin is not a security. He also cleared intent to continue targeting XRP as security, as he didn’t mention it along with “Bitcoin, ether, and stablecoins.”

“Our focus, rather, has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities. Putting this in context, aside from bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion,” he had noted. 

Furthermore, the US SEC has also hinted at continuing to argue ‘digital asset securities’ amidst the appeal in the Second Circuit Court. 

James Murphy Criticizes SEC

Notably, in a latest X post, James Murphy, a crypto lawyer criticized the SEC for using the term ‘Digital Asset Securities’ yet again in its recent X post. The agency also failed to comply with its recent apology for using the term “crypto asset securities” in lawsuits.

The crypto community is increasingly calling out for the dismissal of the long-running Ripple SEC lawsuit. The Ripple CEO Brad Garlinghouse also stated that he is expecting a resolution or end of the SEC lawsuit after Trump’s win. Besides, Lawyer Bill Morgan has noted that the price of XRP is not influenced by Ripple’s efforts as seen by long-term investors. 

Who Should Be The Next SEC Chair?

While Gensler’s departure from the SEC would prove highly beneficial for XRP, Trump’s choice for the agency’s top spot is also essential. Attorney John E. Deaton recently discussed his views on two names for the SEC Chair, Bob Stebbins and Brad Bondi. He picked Brad Bondi for his views on DeFi and self-custody, stating,

“He (Brad Bondi) also went further and said that absolutely 100%, when you take a DeFi protocol and you couple it self-custody, the SEC’s got no business being involved. There is no implications of securities laws. That is what we need.”

Former SEC official John Reed Stark also remarked on Bondi’s likely stance on crypto litigation, noting,

“I would expect Brad, on his first day at SEC headquarters, to order an immediate stop on all SEC crypto-related investigations, to order the litigation unit to stay, settle or dismiss all SEC crypto-related cases forthwith.”

Ripple CLO Shares Key Points To Consider

In the latest X Post, Ripple CLO, Stuart Alderoty has outlined the ‘table stakes for crypto in mind’. He underscored that he trusts the transition team to make the right call with these table stakes for crypto in mind.

He noted that the transition team should focus on addressing non-fraud crypto litigation, securing commitments from Commissioners Uyeda and Peirce, collaborating with financial regulators and Congress on clear crypto rules, renouncing the 2018 Hinman speech and 2019 framework, ensuring transparency around the FOIA process, and restoring public trust by addressing past issues within the SEC.

Notably, XRP price surpassed $1 and eyes reaching $2 next amidst high chances of Gensler’s resignation and the end of Ripple vs SEC lawsuit under Trump. XRP is currently trading around $1.12, down over 0.49% in the last 24 hours.