Ladan Stewart, a former top SEC attorney who once led cases against big names like Ripple and Coinbase, is now pushing for a major change at the SEC. Stewart believes a new leader is urgently needed to repair the SEC’s rocky relationship with the crypto industry. Speaking to Fox Business, she shared how new leadership could finally open doors for better collaboration with crypto companies.
Frustration with Gary Gensler’s approach
Since Gary Gensler became chairman of the SEC in 2021, the agency has pursued numerous enforcement actions, sparking frustration among crypto leaders who see Gensler as a hindrance to their efforts. This tension has become a barrier for crypto companies seeking to cooperate with the SEC on regulatory issues.
Many in the industry, Ripple CEO Brad Garlinghouse, even labeled Gensler’s tenure as a “reign of terror,” saying the agency’s actions against crypto companies make it difficult to engage in meaningful dialogue.
This growing tension has created a rift between the SEC and the industry, making it difficult for companies to find common ground with the agency.
Stewart said that when she moved to the private sector, she was struck by the industry’s resentment toward Gensler. She said without a change in leadership, this ongoing conflict could continue to damage the potential for constructive discussions between regulators and the industry.
Increasing optimism for change
Stewart is not the only one calling for change. Other former SEC officials, including ex-enforcement directors and unit heads, have left the agency to work with private law firms representing crypto clients.
They include former SEC Chairman Jay Clayton and former Chief Financial Officer Bill Hinman, who have served in advisory roles in the crypto sector to promote policies that fuel industry growth.
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Hope for change as the US elections approach
With the upcoming US electionsMany in the crypto world are hopeful that the new SEC leadership could bring about a more open attitude toward the industry. Stewart is optimistic that regardless of the election outcome, a new leader could help the SEC and crypto companies find common ground.
She said a new approach could allow the two sides to work together more effectively.
