Ripple CEO Brad Garlinghouse has expressed strong opposition to the potential appointment of Robert Stebbins as the next Chair of the US Securities and Exchange Commission (SEC). Garlinghouse fears that Stebbins’ leadership could usher in a renewed era of stringent enforcement actions against the crypto industry.
Why The Ripple CEO Is Against Stebbins
“In a group of strong candidates for SEC Chair, it’s unconscionable to consider someone directly involved in Bill Hinman’s unethical (likely illegal) push to pick winners and losers in crypto,” Garlinghouse stated. “Choosing Stebbins would be akin to bringing us back to the start of the regulation by enforcement era,” the Ripple CEO added via X.
Garlinghouse’s remarks were in response to concerns raised by prominent XRP community member Anders, known on X as @X__Anderson. Anders cautioned, “Stebbins is the old guard candidate for the SEC chair. If Trump truly wants to make US the crypto capital, Stebbins should be out of the question.”
Adding weight to the criticism, pro-XRP attorney John E. Deaton, who represented 75,000 XRP holders in the legal battle between Ripple and the SEC, also voiced his disapproval. “It can’t be Stebbins, Jay Clayton‘s pick,” Deaton asserted via X. “He literally signed off on over 80 crypto-related enforcement actions and preferred not to have ETH declared a non-security—not because he thought it was a security—but because giving ETH clarity in June 2018 might limit the SEC’s ability to call it a security later down the road.”
Deaton further elaborated on Stebbins’ approach: “Stebbins argued it’s better to not provide clarity and leave it vague in order to allow the SEC maximum discretion to attack it later. That’s disgusting and exemplifies why we need a reformer. @realDonaldTrump please do not make the big mistake of picking Stebbins. Picking Stebbins is the opposite of what you claimed you wanted to do related to our federal agencies.”
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Wayne Vaughan, Co-Founder and CEO of blockchain firm Tierion, echoed these sentiments. “John is right. Choosing Stebbins would be seen as a betrayal of the crypto community that supported Trump,” Vaughan commented. “Please consider the other excellent options.”
Robert Stebbins, currently a partner at law firm Willkie Farr & Gallagher, served as General Counsel for the SEC during Jay Clayton’s tenure as Chairman. According to Willkie, Stebbins played a pivotal role in advising on over 85 rulemakings and oversaw more than 2,750 enforcement actions during his time at the agency.
Critics argue that Stebbins’ history with the SEC indicates a predisposition toward aggressive enforcement, which they fear could stifle innovation in the rapidly evolving crypto sector. The apprehension is particularly acute given the industry’s desire for clearer regulatory frameworks rather than enforcement actions.
Stebbins is one of several candidates reportedly under consideration to succeed current SEC Chair Gary Gensler. Other potential appointees include Dan Gallagher, the Chief Legal Officer at Robinhood and former SEC Commissioner, Brian Brooks, a former Acting Comptroller of the Currency from May 2020 to January 2021 and ex-CEO of Binance US and Paul Atkins, a member of former President Trump’s 2016 transition team and a previous SEC Commissioner.
At press time, XRP traded at $1.10.
