Regulation
New SEC Leadership Could Impact Ripple Case, Cryptocurrency Prosecutions, Former SEC Staffer Says
Former SEC attorney Marc Fagel recently shed light on the impact that the SEC’s leadership change could have on ongoing cryptocurrency prosecutions, including the high-profile Ripple case. His comments came in response to questions about whether current enforcement actions are being influenced by the political climate or recent scandals. Additionally, the former SEC attorney also revealed the potential impact of the SEC’s new leadership on broader cryptocurrency regulation.
How Will the SEC’s New Leadership Impact the Ripple Case?
Jungle Inc, a popular crypto influencer, asked if a pro-crypto chairman were elected, the new SEC administration would change its approach toward crypto. The lawyer clarified that historically, a new SEC administration typically refrains from interfering with ongoing enforcement actions. For example, a change in leadership would typically not change the course of the Ripple case or other pending proceedings.
Fagel noted, however, that a new administration could change priorities for future cases. He said, however, that enforcement actions are generally apolitical. Fagel said:
“In general, law enforcement is apolitical: a violation of the law is a violation of the law, and most enforcement recommendations are unanimously approved. Cryptocurrency might be different, and a new administration might take a different approach.”
Fagel also noted that in the case of new policies or priorities, settlements or appeals could be influenced. This suggests that if a crypto-friendly administration takes over, the resolution of the Ripple case could be smoother. Additionally, the SEC could refrain from appealing if the decision favors the blockchain payments company.
Moreover, BinanceThe SEC’s lawsuits against Coinbase, Consensys, and other cryptocurrencies could also see a similar resolution. However, the legal outcome would still depend on the court’s findings. If misconduct is proven, even a pro-crypto administration would have to crack down.
Read also : Gemini Co-Founder Warns of Kamala Harris’ ‘Big Bluff’ Against Crypto Industry
Expected changes in cryptocurrency regulation
The discussion focused on the SEC’s increasing aggressiveness under the current chairman, Gary GenslerThe SEC has stepped up its enforcement actions against the cryptocurrency industry. This marks a change from the previous Jay Clayton administration. The previous administration focused more narrowly on egregious violations such as initial coin offerings (ICOs).
Additionally, SEC Commissioner Hester Pierce noted that they had very little discussion about cryptocurrency enforcement at the time. Fagel attributed this increased scrutiny to major fraud cases, including those involving FTX, Celsius, and Terra Luna. As a result, he dismissed the idea that the SEC crackdown was solely due to political figures like Sen. Elizabeth Warren.
He stressed that the huge losses from these scandals have led to stricter enforcement of the law. Fagel acknowledged that while law enforcement is generally apolitical, a new SECOND
The administration could influence future policy directions.
He cautioned, however, that a less aggressive stance could backfire if another major scandal were to occur. That could force the SEC to step up its actions again. “If they take a more hands-off approach on crypto, all it takes is one more FTX/Celsius, and they’re going to ratchet up the pressure even more,” Fagel warned.
Read also : Ripple v. SEC Case: Judge Torres Deliberates Final Decision