cryptojournalist
The U.S. Securities and Exchange Commission (SEC) may freeze enforcement cases against crypto firms that don’t involve fraud allegations when it transitions to new leadership in 2025. According to a Reuters report, the agency could focus its efforts on fraud-related cases, leaving securities law violations under review. This potential shift could mark a significant change in the SEC’s approach to crypto regulation.
Leadership Shake-Up Ahead
On January 20, 2025, President-elect Donald Trump will take office, prompting changes at the SEC. Chair Gary Gensler and Commissioner Jaime Lizárraga are expected to step down, leaving just three commissioners until Trump appoints replacements. Republican commissioners Hester Peirce and Mark Uyeda could take the lead during this interim period. They may review existing SEC rules on securities and reassess ongoing lawsuits involving crypto firms.
Ongoing Crypto Lawsuits
Under Gensler’s leadership, the SEC has targeted major crypto companies like Coinbase, Binance, and Ripple Labs. Ripple has been fighting allegations that it used XRP as an unregistered security to raise funds. While some firms have settled with the SEC or paid fines, others, including Ripple and Coinbase, continue to challenge the agency in court.
The SEC is expected to file an appeal in its Ripple case on January 15, while its lawsuit against Coinbase remains paused, pending appellate court decisions. These cases highlight the growing tension between regulators and the crypto industry.
Political Shifts and Future Implications
Democratic Commissioner Caroline Crenshaw, who joined the SEC in 2020, may remain until the end of 2025 despite Republican opposition to extending her term. Trump’s campaign promises to remove Gensler and appoint a crypto-focused czar suggest a more industry-friendly regulatory environment could be on the horizon.
As the SEC undergoes these changes, the crypto industry will be watching closely to see how the agency’s policies and enforcement priorities evolve.
