{"id":348629,"date":"2024-07-20T19:52:58","date_gmt":"2024-07-20T14:22:58","guid":{"rendered":"https:\/\/dripp.zone\/news\/crypto-titans-bet-on-donald-trump-win-for-sec-shake-up-crypto-news\/"},"modified":"2024-07-20T19:57:52","modified_gmt":"2024-07-20T14:27:52","slug":"crypto-titans-bet-on-donald-trump-win-for-sec-shake-up-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/crypto-titans-bet-on-donald-trump-win-for-sec-shake-up-crypto-news\/","title":{"rendered":"Crypto Titans Bet On Donald Trump Win For SEC Shake-Up – Crypto News"},"content":{"rendered":"

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As the 2024 US presidential election approaches, crypto leaders are anticipating significant changes in regulatory oversight if Donald Trump returns to the White House. The crypto industry is dissatisfied with current administration\u2019s stringent approach led by the Securities and Exchange Commission (SEC) under Chair Gary Gensler. This has prompted hopes among crypto advocates that a Trump presidency could usher in a more lenient regulatory environment.<\/p>\n

How Donald Trump\u2019s Win Could Reshape Crypto Regulations<\/h2>\n

Michael Selig, a partner at Willkie Farr & Gallagher LLP, suggests that a Trump administration could \u201creset and rethink the SEC\u2019s crypto regulatory policy,\u201d potentially resolving ongoing enforcement actions and investigations initiated during the Biden administration. This sentiment reflects a broader expectation within the crypto community that Trump\u2019s return could lead to a reduction in regulatory pressure.<\/p>\n

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Under President Joe Biden, the SEC has intensified its scrutiny of the cryptocurrency sector, especially following the collapse of the FTX exchange in late 2022. The regulator has pursued numerous enforcement actions against exchanges and broker-dealers, alleging failures to comply with securities laws. Gensler has asserted that many cryptocurrencies qualify as securities and should therefore adhere to SEC registration requirements\u2014a position that has sparked contention within the industry.<\/p>\n

Despite some settlements, significant litigation involving major players like Ripple, Coinbase, Kraken, and Binance remains unresolved. Recently, he SEC has also closed investigations into Ethereum and Binance USD (BUSD), a USD-backed stablecoin issued by Paxos. However, the debate over whether specific tokens should be classified as securities persists.<\/p>\n

A critical case in point is the SEC\u2019s lawsuit against Ripple Labs Inc., which alleges that Ripple conducted an unregistered securities offering through the sale of XRP tokens, raising over $1.3 billion.<\/p>\n

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Although a federal judge ruled last July that XRP sales to retail investors did not constitute investment contracts, the case\u2019s outcome remains uncertain. However, Ripple CEO Brad Garlinghouse recently indicated that a resolution could be forthcoming. He noted, \u201cWe expect a resolution very soon.\u201d<\/p>\n

SEC Reform After Trump Win?<\/h2>\n

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The prospect of Donald Trump\u2019s victory has fueled speculation about a potential shake-up at the SEC. Austin Campbell, a blockchain consultant and adjunct professor at Columbia Business School, pointed out that a new administration could swiftly alter the SEC\u2019s leadership.<\/p>\n

\u201cRemember, if Trump gets elected, the Republicans can immediately change who the chair is,\u201d Campbell said. He predicts that this shift could lead to the settlement of many current cases, potentially ending the \u201chighly variable decisions that are increasing confusion.\u201d<\/p>\n

However, some experts caution against assuming that a Trump presidency would automatically lead to a dramatic change in enforcement practices. Emily Meyers, general counsel at venture capital firm Electric Capital, argues that securities enforcement cases are typically \u201capolitical\u201d and not subject to significant staff turnover with political shifts.<\/p>\n

\u201cIt\u2019s unlikely that any ongoing cases get dropped, especially those that are already being argued in federal court,\u201d Meyers added, according to a Bloomberg report. Instead, she suggests that a new administration might focus on different types of enforcement cases rather than dismissing existing ones.<\/p>\n

Hester Pierce To Replace Gary Gensler?<\/h3>\n

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Similarly, Ji Kim, chief legal and policy officer at the Crypto Council for Innovation, also weighed in. He believes that while Donald Trump administration might alter the regulatory landscape, such changes would depend on the new leadership and the composition of the SEC commissioners.<\/p>\n

\u201cIf President Trump were reelected and Chair Gensler steps down, we could see the current regulation-by-enforcement norm change,\u201d Kim said. He further added, \u201cHowever, that would depend on the leadership and the make-up of the commissioners \u2014 nothing is guaranteed.\u201d<\/p>\n

Meanwhile, Rep. French Hill believes that SEC Commissioner Hester Pierce could replace Gary Gensler after Trump\u2019s Win. In a recent interview, the SEC Commissioner noted, \u201cIf the president changes, typically the chairman of the SEC will also change in response to that.\u201d However, Pierce refrained from making any predictions about who would succeed Gensler<\/p>\n

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