Author: Lüdong Xiaogong, BlockBeats

A few hours ago, the US Securities and Exchange Commission (SEC) dropped all charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen. This victory marks the third consecutive win for Garlinghouse, Larsen, and Ripple, following the ruling in July 2023 that "XRP itself is not a security" and the subsequent October federal judge decision to reject the SEC's appeal.

Ripple's Chief Legal Officer, Stuart Alderoty, posted on social media that "the US Securities and Exchange Commission made a serious mistake when charging Brad & Chris individually. Now they have surrendered and dismissed all charges against our executives. This is not a settlement. This is the SEC's surrender." BlockBeats previously reported that earlier today, the US SEC withdrew all charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.

Amidst the wave of digital currencies, countries around the world hold various attitudes towards how to manage and regulate cryptocurrencies. In the United States, while the cryptocurrency industry hopes for a more friendly regulatory environment, the SEC is facing pressure from all sides for its seemingly softening stance towards the industry.

Gensler is surrendering to cryptocurrency?

In a recent interview, SEC Chairman Gensler's attitude towards BTC spot ETFs has undergone a significant change. Gary Gensler stated that staff are "considering" multiple BTC spot ETFs, emphasizing that supporters of Bitcoin ETFs must ensure that their products are registered with the US Securities and Exchange Commission and go through a filing process similar to public offerings.

The decision of the US Federal Court also marks a change in the SEC's tough stance on cryptocurrency ETFs. At the end of August, Grayscale won an important victory in its dispute with the SEC over its Bitcoin spot ETF. According to court documents, a three-judge panel in Washington overturned the SEC's decision to block the Grayscale ETF. The court said that "rejecting Grayscale's proposal was arbitrary and capricious because the SEC failed to explain its differing treatment of similar products."

Related reading: "Grayscale wins SEC lawsuit, new hope for DCG empire behind GBTC?"

Therefore, it is reported that the Washington DC Circuit Court of Appeals will make a final ruling on this case this Friday or next Monday. It is widely expected in the industry that the SEC will approve new ETFs before March or April next year, but the exact timing is still uncertain. This move shows that the SEC may be adopting a more open attitude towards cryptocurrency ETFs.

Not only the court, but also the attitude of the Congress towards SEC seems unfriendly recently. On June 12th, US Congressman Warren Davidson proposed the "SEC Stability Act" to the House of Representatives. One of the main provisions of the bill is to restructure the US SEC and dismiss SEC Chairman Gary Gensler.

The proposal has received support from another congressman, Tom Emmer. "American investors and the industry should be subject to clear and consistent supervision, not political games. The 'US SEC Stability Act' will bring sensible reforms to ensure that the primary mission of the US SEC is to protect the investors they are responsible for, rather than catering to the whims of their reckless chairman," said Tom Emmer in a press release.

Billionaires express dissatisfaction with SEC

However, this is not just about ETFs. There seems to be another reason for Gensler's softened attitude. Yesterday, billionaires Elon Musk and Mark Cuban both expressed strong dissatisfaction with the SEC's administrative procedures.

They stated in their joint amicus brief that they support a thorough reform of the current administrative procedures of the SEC. The current procedures allow the use of internal judges to preside over cases brought by the SEC itself, and prohibit defendants from enjoying the right to a trial by jury. The voices of these business leaders may have a greater impact on the SEC, forcing it to reconsider its approach to cryptocurrency and related industries.

Currently, it seems that SEC is facing unprecedented pressure and is forced to reconsider its stance on cryptocurrency. Walking on the path of compromise with crypto supporters, we may witness the approval of BTC spot ETF in the short term.

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