After years of regulatory uncertainty and lawsuits, the crypto market is optimistic about a potential shift. Donald Trump’s re-election could pave the way for crypto-friendly regulations, possibly dismissing long-standing legal cases that have hindered the industry for over a decade.
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Katrina Paglia, Pantera’s Chief Legal Officer, believes the departure of SEC Chair Gary Gensler in January 2025 could significantly reduce legal pressure on crypto companies. Speaking at the North American Blockchain Summit, she predicted many ongoing lawsuits might “quietly go away” through settlements.
These settlements, often structured as “neither admit nor deny” agreements, would allow companies to pay fines without admitting fault, ending disputes without prolonged trials. Paglia also highlighted that the SEC’s use of Wells Notices — warnings of potential legal actions — could decline after Gensler steps down, easing the regulatory environment for companies like Ripple, Binance, and Coinbase.
Paglia expects the SEC to issue more “no-action letters” after Gensler’s exit. These letters assure companies that their actions won’t result in enforcement, offering much-needed clarity. For an industry often overshadowed by regulatory unpredictability, this could bring relief and help firms operate with more confidence.
Hester Peirce’s Role in Crypto Regulation
There’s speculation that SEC Commissioner Hester Peirce, known for her supportive stance on digital assets, could play a bigger role until a new chair is appointed. Paglia suggested that Peirce’s crypto-friendly approach could ease regulatory pressures, potentially leading to practical solutions like increased no-action letters.
Paglia anticipates a significant easing of legal challenges for crypto companies by the first quarter of 2025. She believes Gensler’s departure could be a game-changer for major cases, including Ripple vs. SEC, Coinbase, and Binance. These companies have faced reputational and financial damage from what she described as “unfair legal trials.”
If Trump’s administration introduces crypto-friendly guidelines by 2025, it could mark a turning point, bringing stability and encouraging innovation in the sector.
Industry Leaders Call for Change
Other industry leaders share similar hopes. Consensys CEO Joe Lubin recently predicted that most crypto cases will either settle or be dismissed under new SEC leadership. Meanwhile, Coinbase CEO Brian Armstrong argued that the next SEC chair owes an apology to the American public for the damage caused to the crypto industry.
A new SEC chair, possibly more crypto-friendly, could issue no-action letters and bring clarity to the crypto market, easing regulatory pressures and potentially leading to more favorable outcomes for crypto companies.
With new leadership on the horizon, the stage is set for a fresh start in the crypto industry.
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