Crypto vs SEC Cases to Be ‘Dismissed or Settled’ Under Trump, Says Joe Lubin

Joe Lubin, the CEO of ConsenSys, believes that a second term for Donald Trump could usher in a significant shift for the crypto industry, offering hope for firms like Coinbase, Binance, and Ripple that have faced years of legal battles with the SEC.

Speaking at DevCon 2024 in Thailand, Lubin suggested that Trump’s pro-crypto stance and his plan to remove SEC Chair Gary Gensler could potentially lead to the dismissal or settlement of many ongoing SEC cases. Yet, with Republicans unlikely to secure a majority on the SEC for some time, legal experts warn that a commission vote would still be needed to drop current charges.

Could this mean a major win for the crypto sector?

Has the SEC Been Restricting Innovation?

These firms have faced strict actions from the SEC, which has labeled many crypto assets as securities. Lubin argues that this regulatory pressure has hindered growth and innovation. He pointed to ConsenSys’ lawsuit against the SEC earlier this year, which drew attention to what he calls the SEC’s overreach, especially in its efforts 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 terminology around “investment contracts.” He clarified that Ripple has legal obligations to its shareholders, not XRP holders, and emphasized that XRP prices aren’t directly tied to Ripple’s actions.

Pro-XRP lawyer Bill Morgan also highlighted that Judge Torres ruled XRP sales to retail holders aren’t securities under the Howey test, which is a key argument in the ongoing case.

What Are Legal Experts Saying?

Attorney Fred Rispoli believes a settlement is more likely than a full dismissal of the cases. However, former SEC lawyer James Farrell is skeptical. He thinks the SEC will continue targeting secondary market crypto sales, despite growing criticism of Gensler’s regulatory approach.

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Lubin’s comments reflect a sense of optimism in the crypto community, hoping that a Trump administration could ease regulatory pressures and reshape the SEC’s approach. This could help resolve years of disputes that have slowed U.S. crypto market growth.

The first 100 days of a potential Trump presidency could determine whether these legal cases are dismissed or settled, marking a key moment for the industry.