According to a Reuters report, the SEC might reconsider certain cases against crypto firms following a leadership change in 2025.
SEC Plans for 2025
According to the Reuters report, the SEC may review its existing cases against crypto firms in the first few days after President-elect Donald Trump’s inauguration. The commission might freeze litigation not involving fraud allegations, focusing only on alleged securities law violations.
Implications of Cases Against Crypto Firms
After January 20 and the resignations of SEC Chairman Gary Gensler and Commissioner Jaime Lizárraga, there will likely be only three members in the commission until Trump's nominations. Commissioners Hester Peirce and Mark Uyeda, both Republicans, could reassess the definition of a security and ongoing cases with crypto firms. Under Gensler, lawsuits were filed against companies like Coinbase, Binance, Celsius, and others.
Future of SEC Under New Leadership
Caroline Crenshaw, a Democratic SEC commissioner, is expected to serve until the end of 2025. Removing Gensler was one of Trump's campaign promises. After his election victory, he announced the appointment of an AI and crypto czar and a potential replacement for the SEC chair.
The future of the SEC post-2025 leadership change remains uncertain, but potential changes could significantly impact ongoing crypto firm litigations.
