Ripple News: Trump Can’t Fire Gensler Without Cause, But These Missteps Could Make It Possible
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Can Trump Really Fire SEC Chair Gary Gensler? The short answer is yes and no. For the unversed, Trump promised to fire Gary Gensler on his first day in office if elected. Now that Trump has won and will take office on January 20, Gensler’s potential removal could become a key issue, especially with the ongoing Ripple case heating up.
As the head of an independent agency, the SEC Chair cannot be removed at the President’s discretion. To fire Gary Gensler, the President would need a “for cause” reason—such as documented inefficiency, neglect of duty, or misconduct. Author and Economist Timothy Peterson took to his X handle and listed reasons Gensler Could Be Fired:
SEC Twitter Hack (January 2024)
The SEC’s Twitter account was hacked in January 2024, spreading false information that the SEC had approved a Bitcoin ETF. This caused Bitcoin’s price to spike and then drop sharply, leading to $19 billion in losses for investors. The SEC’s failure to protect its account raised serious concerns about its competence.
Ripple Court Ruling (July 2023)
In July 2023, a judge ruled against the SEC in its case against Ripple Labs, rejecting the idea that XRP should be considered a security. This decision exposed the SEC’s overreach and resulted in $3.75 billion in losses for XRP investors due to price suppression by the SEC.
Grayscale Bitcoin ETF Rejection (August 2023)
The U.S. Court of Appeals ruled that the SEC’s rejection of Grayscale’s Bitcoin ETF was “arbitrary and capricious,” meaning it was an unfair and unjustified decision. The SEC’s actions resulted in $75 billion in losses for Bitcoin investors.
DEBT Box Case (2023-2024)
The SEC’s case against DEBT Box in 2023 faced criticism after the agency made false statements to secure court orders. In 2024, a judge dismissed the case and ordered the SEC to pay $1.8 million in legal fees. The case caused $300 million in losses to investors.
