Regulation
New SEC Leadership Coming Soon? Here’s What’s Next in Ripple Lawsuit and Other Actions
Former SEC attorney Marc Fagel has explained how a change in SEC leadership in favor of cryptocurrencies could impact ongoing lawsuits, including the Ripple case. While a change in administration is unlikely to impact ongoing cases, it could lead to significant changes in future cryptocurrency regulations. With speculation of a potential Trump victory, many in the crypto community are hoping for an end to Gary Gensler’s leadership.
Here’s what you need to know.
What about legal proceedings?
Some are concerned about whether a new SEC chairman could impact ongoing cryptocurrency cases.
Jungle Inc., a well-known cryptocurrency expert and influencer, asked Marc Fagel about the SEC’s enforcement actions under different political administrations. Fagel noted that during Chairman Clayton’s tenure, the SEC rarely focused on cryptocurrency except for obvious violations like ICOs. Under Gensler, however, enforcement has increased due to major fraud cases involving entities like FTX and Celsius. Jungle Inc. wonders if a pro-crypto administration could change this approach or if the SEC will continue its current enforcement until new laws are passed by Congress.
Will future policies impact Ripple?
Fagel assured that a new SEC leadership is unlikely to change the course of ongoing cases like Ripple’s. Typically, new leadership does not interfere with ongoing enforcement actions. However, he noted that future policies could influence the disposition or appeals of these cases. If a pro-crypto administration takes over, the Ripple case could be more easily resolved and the SEC could avoid appeals if the decision goes in Ripple’s favor.
New leadership, new rules!
Fagel noted that enforcement actions are generally apolitical, meaning they target violations regardless of the political climate. However, a new leadership could lead to a more lenient approach to cryptocurrency regulation. If a crypto-friendly administration comes to power, it could focus on more lenient policies, which could affect how lawsuits involving large companies like Binance, Coinbase, and Consensys are handled. Still, any proven misconduct would still result in regulatory action.
A lenient approach – good or bad?
Even if a new administration takes a less aggressive stance, Fagel warns that it could backfire if another major scandal occurs. Such incidents could force the SEC to ramp up its enforcement efforts again. Fagel noted that major fraud cases have fueled the current enforcement climate, suggesting that any leniency could be short-lived if similar problems arise.
While the SEC’s new leadership could influence future cryptocurrency regulations, the primary enforcement efforts will remain focused on legal violations and market misconduct. Ripple v. SEC and other major cryptocurrency-related lawsuits will continue to be overseen by the SEC regardless of policy changes.
The cryptocurrency industry is at a crossroads. Will the new SEC chair be friend or foe? Join the conversation.