The post Crypto Lawsuits May End by 2025 with New SEC Chair and Trump’s Crypto Guidelines appeared first on Coinpedia Fintech News
The Crypto market has faced a decade of crypto manipulation and with Trump’s win the market is cheering with a hope that the new regulations will be crypto-friendly and earlier cases will be dismissed.
Katrina Paglia, Pantera’s chief legal officer, predicts that many ongoing securities lawsuits against crypto companies in the U.S. will “quietly go away” once SEC Chair Gary Gensler steps down in January 2024. Speaking at the North American Blockchain Summit, Paglia emphasized that settlements are likely, with many defendants agreeing to pay fines without admitting to wrongdoing. These settlements may include “neither admit nor deny” language, signaling a resolution without further legal battles.
Wells Notices to Be Dismissed?
Paglia also pointed out that the SEC’s Wells Notices, which are effectively warnings signaling potential legal actions, may disappear with Gensler’s exit. Companies like Ripple, Binance, and Coinbase have all received such notices, indicating the SEC’s readiness to pursue litigation. However, with a new SEC chair in place, Paglia expects the investigations to lose momentum and gradually be dismissed, providing relief to those companies.
Potential for ‘No-Action Letters’
Moving on, Paglia also anticipates that the SEC may issue more “no-action letters” after Gensler’s departure. These letters are formal responses from the SEC that indicate the agency will not take enforcement action against a company if it proceeds with a particular course of action. According to him, such letters will provide much-needed clarity and relief for the crypto industry, especially after years of regulatory uncertainty.
Hester Peirce’s Role in Crypto Regulation
With Gensler’s exit, there are rumors that SEC Commissioner Hester Peirce may step into a larger role in overseeing crypto matters until a new chair is appointed. Known for her more crypto-friendly stance, Peirce could steer the SEC toward more favorable outcomes for the industry, including issuing no-action letters to ease regulatory pressures.
Moreover, Paglia is expecting an ease in crypto cases by Q1 of 2025. He believes that Gensler’s exit can be a big game-changer for many crypto cases. Overall, Crypto cases like Ripple vs SEC, Coinbase, and Binance have faced serious damage due to this unfair legal trial. This could be a bigger moment for crypto if Trump approves crypto-friendly guidelines by 2025.
Consensys CEO Joe Lubin also said last week that crypto cases will come to an end or settlement with a new SEC chair. Whereas, Coinbase CEO Brian Armstrong said that the new chair should apologize to Americans for this heavy damage.