ConsenSys CEO Joe Lubin recently expressed confidence that many SEC cases against crypto companies could soon be dismissed or settled when Donald Trump assumes the role of the 47th president of the United States.
The crypto industry is optimistic about a brighter regulatory future. The industry, long embattled with the Securities and Exchange Commission (SEC), is now hoping for more crypto-friendly regulations.
ConsenSys CEO Predicts Trump’s Re-Election Will End War Between SEC & Crypto
His remarks stem from an interview conducted at the DevCon 2024 conference in Thailand shortly after Trump’s November 5 victory. Lubin suggested that under Trump’s administration, the crypto sector could save “hundreds of millions” in legal costs.
During his campaign, Trump had championed pro-crypto views, promising to fire SEC chair and crypto skeptic Gary Gensler on day one of his presidency and pledging to appoint crypto-friendly officials in key roles.
Legal Trouble Between SEC and Crypto Companies
The SEC is currently locked in long-standing lawsuits with giants of the crypto industry, including Binance, Coinbase, and Ripple. Ripple has been embroiled in a dispute with the SEC since December 2020 over whether XRP, the company’s native token, qualifies as a security.
Ripple CTO David Schwartz has consistently criticized the SEC’s stance, pointing out that Ripple’s legal obligations are to its shareholders, not XRP holders. Recently, Judge Analisa Torres ruled that XRP sales to retail holders are not securities under the Howey test, a decision celebrated by Ripple’s legal team.
Lubin also shared that ConsenSys had filed a lawsuit against the SEC in April, challenging the agency’s claim that Ethereum’s native token, ETH, is a security. Ripple’s case, along with those involving Coinbase and Binance, has amplified wider industry frustrations over regulatory clarity and SEC scrutiny.
States and Crypto Supporters Fight Back
Meanwhile, in a separate legal battle, Kentucky Attorney General Russell Coleman filed an amicus brief on behalf of 18 states against the SEC, accusing the agency of overreach and targeting the $3 trillion crypto sector.
The coalition, which includes 17 other states ranging from Texas to Florida, has gained the support of the DeFi Education Fund, an advocacy group for balanced decentralized finance (DeFi) policies.
The lawsuit argues that the SEC’s aggressive crackdown on the crypto industry exceeds federal authority and stifles innovation, violating constitutional principles.
Crypto Support Expected from the Trump Administration
Crypto industry leaders believe Trump’s pro-crypto agenda could reshape regulations. Trump’s campaign positioned him as a crypto-friendly candidate by vowing to reduce regulatory obstacles in the digital asset space. Lubin credited Trump’s ability to understand industry trends as a key factor in fostering optimism within the crypto community.
If the SEC’s influence under Gensler is curtailed, crypto companies could experience fewer regulatory burdens, allowing for greater innovation and investment. Analysts believe Trump’s administration could usher in a more favourable environment for digital assets, fostering growth and encouraging further adoption in the US.
Industry’s Newfound Optimism
Despite previous fears of regulatory pressures, the crypto community is now feeling hopeful. Trump’s return to the White House signals a potential turning point for the US crypto sector.
The industry looks forward to resolving longstanding regulatory conflicts, simplifying policies, and positioning the US as a global hub for blockchain and crypto innovation.