Crypto Litigation May End in 2025 With New SEC Chairman and Trump’s Crypto Guidelines
The Crypto market has faced a decade of crypto fraud and with Trump's victory, the market is buzzing with excitement, hoping that the new regulations will be crypto-friendly and the previous issues dismissed.
Catrina Paglia, Pantera's chief legal officer, predicts that many securities lawsuits against crypto companies in the US will “quietly go away” after SEC Chairman Gary Gensler steps down in January 2024. Many defendants may agree to pay fines without admitting wrongdoing. These settlements may include “neither accept nor repudiate” language that suggests a resolution without further legal battles.
Will Wales' notices be rejected?
Paglia noted that the SEC's Wells notices, effective warnings indicating possible legal action, may disappear with Gensler's departure. Companies like Ripple, Binance, and Coinbase have all received such announcements, signaling the SEC's readiness to pursue charges. But, with a new SEC chair in place, Paglia expects the investigations to slow down quickly and to gradually be dismissed, giving relief to those companies.
It can be for ‘no action letters'
Next, Paglia expects the SEC to issue more “no-action letters” after Gensler's departure. These letters are formal responses from the SEC indicating that the agency will not take enforcement action against a company if it continues with a particular course of action. According to him, such letters bring much-needed clarity and relief to the crypto industry, especially after years of out-of-control issues.
Hester Pierce's Role in Crypto Regulation
With Gensler's exit, there are rumors that SEC Commissioner Hester Pierce may step into a larger role in overseeing crypto affairs until a new chair is appointed. Known for her more crypto-friendly stance, Pearce could steer the SEC toward more favorable outcomes for the industry, including issuing no-action letters to ease regulatory pressures.
In addition, Paglia Q1 of 2025 is expecting ease in crypto issues. He believes Gensler's exit could be a big game changer for many crypto issues. Crypto cases like Ripple vs SEC, Coinbase and Binance in general have suffered huge losses due to this unfair legal attempt. Trump in 2016 If it approves crypto-friendly guidelines by 2025, this could be a big time for crypto.
Consensys CEO Joe Lubin said last week that crypto issues will come to an end or be settled with a new SEC chair. However, Coinbase CEO Brian Armstrong said the new chairman should apologize to the American people for this serious injury.
