ConsenSys CEO Joe Lubin thinks that the ongoing legal disputes between cryptocurrency firms and the U.S. Securities and Exchange Commission (SEC) may be settled in a way that is better for the crypto industry if Donald Trump is re-elected as president. Lubin believes that the SEC could drop or solve many of the cases in a way that would not harm anyone’s reputation. This could save the crypto sector hundreds of millions of dollars in legal fees.
Lubin’s remarks at the DevCon 2024 conference in Thailand demonstrate the optimism in the industry following Trump’s campaign pledges to support cryptocurrency. One of the plans was to remove SEC Chair Gary Gensler. Crypto supporters often criticize Gensler for his excessive strictness on digital assets. In addition, Lubin said that Trump’s transition team has been working hard to change how the government regulates crypto, which is a positive sign for the industry.
The SEC and the crypto industry have had a negative relationship for a long time. The SEC has been mean to big exchanges like Binance and Coinbase as well as companies like Ripple. These businesses have been involved in court battles regarding the classification of digital assets. The SEC has called many cryptocurrencies securities, which means they are subject to stricter regulation.
Lubin’s own business, ConsenSys, is suing the SEC, claiming the agency overreached when it attempted to classify Ethereum as a security. Even though a federal judge in Texas threw out ConsenSys’ lawsuit, the SEC’s moves continue to make people worry about too much government control.
People are hoping that the legal fights in the crypto industry will soon be over, as Trump’s re-election might change how the SEC regulates the industry. This would allow for more growth and innovation. While legal experts differ on the necessity of dismissing all SEC cases, they generally agree that a shift in leadership could restore equilibrium and create more equitable regulations for digital assets.
