Crypto Quill

The U.S. Securities and Exchange Commission (SEC) released its fiscal year 2024 enforcement action report on Tuesday, November 26. The report revealed that the SEC filed 583 enforcement actions, bringing in a record $8.2 billion in financial remedies, a landmark achievement for the commission. Among these, the Terraform Labs case stood out, contributing more than $4.5 billion in disgorgement, civil penalties, and prejudgment interest—making up about 56% of the total financial recoveries.

Notably absent in the report was any mention of the Ripple case, despite the SEC previously slapping Ripple with $125 million in civil penalties. This omission has sparked controversy, with Ripple’s Chief Legal Officer, Stuart Alderoty, commenting, “The SEC bragging about record fines collected is like a professor boasting about their highest-ever class failure rate and the most cheating scandals. It’s not a measure of success—it’s an indictment of oversight gone terribly wrong.”

The SEC’s approach under Chair Gary Gensler has drawn criticism, with many arguing that it has relied too heavily on regulation through enforcement. This method, some critics argue, has contributed to uncertainty in the broader crypto market. The fiscal year 2025 numbers are expected to be much lower, especially with changes in the SEC’s leadership under the potential Trump administration.

Trump Administration Eyes CFTC for Crypto Regulation

In a significant shift, the Trump administration is considering a major overhaul of crypto regulation, with the Commodities Futures Trading Commission (CFTC) positioned to take a more central role in overseeing digital assets. This proposal aligns with Chris Giancarlo, the former CFTC Chairman, who suggested that with the right leadership and funding, the CFTC could begin regulating digital commodities as soon as Trump assumes office.

The idea of the CFTC leading crypto regulation is not new. In 2022, Senators Cynthia Lummis and Kirsten Gillibrand introduced the Responsible Financial Innovation Act, a bipartisan bill aimed at establishing a clearer regulatory framework and defining responsibilities between the CFTC and SEC.

This proposed shift in oversight would provide much-needed clarity to the U.S. crypto market and could be seen as a positive development, especially for crypto companies frustrated with the SEC’s aggressive enforcement actions. The change in leadership at the SEC, with Paul Atkins reportedly in the running for SEC Chair, could also signal a more pro-innovation stance.

XRP Price Action

On Tuesday, November 26, XRP experienced a 1.17% decline, following a 1.26% loss on Monday. The coin closed at $1.3988, reflecting the broader crypto market downturn, which fell by 1.35%, bringing the total crypto market capitalization to $3.11 trillion.

Looking ahead, the appointment of a pro-crypto SEC Chair could be a pivotal factor for XRP’s price movement. If the SEC cases against crypto firms like Ripple ease under new leadership, XRP could potentially climb towards the May 2021 high of $1.8171. For this to happen, XRP must first break past the November 23, 2024 high of $1.6299. However, should the SEC persist with its appeal against Ripple post-Trump’s inauguration, XRP could see further downward pressure, potentially targeting $1.