The post Crypto vs SEC Cases Could Be ‘Dismissed or Settled’ Under Trump, Says Joe Lubin of Consensys appeared first on Coinpedia Fintech News
Consensys CEO Joe Lubin anticipates a favorable shift for the crypto industry with Donald Trump’s reelection, expecting that many SEC cases against crypto firms could be “dismissed or settled.” Speaking at DevCon 2024 in Thailand, Lubin suggested that Trump’s pro-crypto stance and his pledge to remove SEC Chair Gary Gensler could potentially save the industry millions in legal fees and regulatory setbacks. However, republicans won’t have a majority in the SEC for some time, and lawyers say a commission vote would be required to drop current charges.
Lubin highlighted the Trump transition team’s assertive approach to filling the administration with pro-crypto individuals, noting Trump’s keen political sense for responding to industry needs.
The leadership change offers hope for companies like Coinbase, Binance, and Ripple, which have been dealing with long-standing SEC cases. These firms have faced strict SEC actions, as the agency labeled many crypto assets as securities. Joe Lubin from Consensys argues this has held back growth and innovation in the industry. He believes Consensys’ lawsuit against the SEC earlier this year brought attention to what he calls the SEC’s overreach, especially in its attempts to classify Ethereum 2.0 as a security.
Expert’s Weigh in on SEC’s Confusing Terms
Ripple CTO David Schwartz criticized the SEC for confusing terms around “investment contracts” and clarified that Ripple has legal duties to its shareholders, not XRP holders, emphasizing that XRP prices don’t depend on Ripple’s efforts. Pro-XRP lawyer Bill Morgan highlighted that Judge Torres ruled XRP sales to retail holders aren’t securities under the Howey test.
Attorney Fred Rispoli suggested settlement is more likely than a dismissal. However, former SEC lawyer James Farrell believes there’s no chance of dismissing all the cases, as the SEC plans to keep targeting secondary market crypto sales, despite mounting criticism against SEC Chair Gary Gensler’s regulatory approach.
Lubin’s statements reflect broader optimism within the crypto community that a Trump administration will ease regulatory pressures and reshape the SEC’s approach, potentially resolving years-long disputes that have stifled the industry’s U.S. growth.
This will be interesting to see if regulatory overreach cases are dismissed or settled in Trump’s first 100 days of taking control.