The legal struggles involving cryptocurrency companies and the U.S. Securities and Exchange Commission (SEC) may potentially ease if Donald Trump secures reelection as president. Joe Lubin, CEO of Consensys, expressed a belief that a new administration could lead to the dismissal or settlement of ongoing cases, resulting in significant financial relief for the crypto sector.
Following Trump’s recent electoral victory, there is a renewed sense of optimism within the crypto community, bolstered by his campaign commitments. Notably, Trump has indicated plans to remove current SEC Chairman Gary Gensler, who has been seen as a critical figure towards cryptocurrency regulation. Anticipation surrounds the possibility that Trump will appoint individuals who are more favorable toward crypto within his future cabinet.
Lubin highlighted that the incoming Trump administration appears to be taking decisive steps, describing Trump as an adept politician who is skilled at gauging public sentiment. This change in leadership could represent a pivotal moment for the cryptocurrency sector, especially as the SEC has been engaged in extensive litigation against major exchanges like Binance and Coinbase, alongside its long-running dispute with Ripple dating back to late 2020.
In April, Consensys initiated its own legal action against the SEC, claiming that the regulatory body intended to classify Ethereum as a security. This lawsuit, according to Lubin, has ignited further discussion and scrutiny regarding the SEC’s regulatory approach to cryptocurrencies.
Despite the initial dismissal of Consensys’ case by a Texas federal judge, another ongoing SEC case against the company is still active. The SEC accuses Consensys of operating as an unregistered broker, asserting that it was involved in unauthorized sales of securities through its MetaMask Swaps platform. As the crypto industry navigates this regulatory landscape, calls for SEC reform are gaining momentum, with industry leaders advocating for a more constructive relationship between regulators and the crypto sector.
