SEC Names Jorge Tenreiro as New Chief Litigation Counsel Amid Regulatory Tensions

Highlights:

• A former lead of key crypto cases, Jorge Tenreiro, is the new SEC’s Chief Litigation Counsel.
• That appointment also highlights the focus the SEC is taking in enforcing securities laws for digital assets.
• This move indicates continued regulatory challenges for the crypto industry under stricter oversight.

Jorge Tenreiro’s recent promotion to the US Securities and Exchange Commission (SEC) Chief Litigation Counsel post has raised some concerns in the crypto space. He announced his promotion in a recent LinkedIn update. This comes at a critical time as Donald Trump, the president-elect, is about to take office next month.

Tenreiro’s promotion indicates that the SEC may maintain its strict approach toward crypto firms. As the SEC’s chief litigation counsel, he will be responsible for overseeing lawsuits and investigations handled by the Division of Enforcement throughout the country. The job position is now closed. It was advertised with a salary of $305,000 per year.

SEC’S GOT ITS NEW LITIGATOR, AND CRYPTO’S NOT HAPPY

So the SEC just made Jorge Tenreiro its new Chief Litigator, and crypto’s not loving it.

He’s the dude who’s been all over Ripple’s case, and now he’s got even more power to come after crypto.

Market bulls were hoping for… pic.twitter.com/wNzKPC4X7P

— Mario Nawfal’s Roundtable (@RoundtableSpace) December 3, 2024

Who is Jorge Tenreiro?

Tenreiro became the deputy chief of the SEC’s crypto assets and cyber unit in October 2022. He was promoted to chief of the unit in June after David Hirsch left. Th recent change follows the exit of Olivia Choe, the former SEC litigation chief, who joined Milbank LLP in July for a private sector role.

Meanwhile, Tenreiro has led multiple lawsuits for the agency. These include cases against top industry players. Some of the parties involved include Coinbase and Kraken exchanges, Tron and Justin Sun, as well as Ripple Labs in a lengthy legal dispute.

However, his assertive legal strategies have made him a topic of conversation in crypto enforcement. In the Ripple lawsuit, Tenreiro argued that XRP should be considered an unregistered security. His team was behind enforcement actions against FTX and Terraform Labs, leading to a record $4.47 billion settlement earlier this year.

Crypto Industry Reacts to Tenreiro’s Appointment as New Chief Litigation Counsel

Tenreiro has many critics in the industry. Crypto lawyer John Deaton wrote in a Dec. 1 X post that Tenreiro is at the top of a list of lawyers the crypto industry should avoid if they leave the agency. In another post, Deaton said Tenreiro and Gary Gensler are very similar at the SEC. He also claimed Tenreiro misled a federal judge in the Ripple case by falsely saying Deaton had threatened SEC staff with physical violence, which was used to block his appointment as amicus counsel for XRP holders.

Jorge Tenreiro was appointed Chief Litigation Counsel at the SEC. I can assure you he and @GaryGensler are two peas 🫛 in the same SEC pod.

Jorge Tenreiro misled a federal judge when he claimed I should not be appointed amicus counsel on behalf of XRP holders in the @Ripple… https://t.co/txE3cvJc4W pic.twitter.com/kV9KgSxgeb

— John E Deaton (@JohnEDeaton1) December 3, 2024

Stuart Alderoty, Ripple’s Chief Legal Officer, also warned the community against hiring lawyers who have joined the SEC in the battle against crypto firms.

Alderoty wrote:

“As crypto enters its renaissance, please don’t hire any lawyer who was involved in suing any crypto company or project, or those who cheered the SEC suing a particular company, CEO, or founder.”

A Challenging Path for Pro-Crypto Policies?

The crypto industry is optimistic that President-elect Donald Trump’s administration will set clear regulatory guidelines. Such regulations could encourage innovation within the cryptocurrency space while ensuring compliance and safeguarding investors. However, Tenreiro’s track record at the SEC indicates that stringent enforcement of regulations is likely to persist under his leadership.