Two of the SEC’s three Democratic commissioners are set to step down before Donald Trump assumes office on Jan. 20.
According to reports, the US Securities and Exchange Commission may contemplate the dismissal of specific crypto enforcement cases once it transitions to new management in 2025.
The agency may review its existing court cases against crypto firms in the first few days after US President-elect Donald Trump’s inauguration, according to a Jan. 15 Reuters report citing “people briefed on the matter.”
The report indicates that the commission may consider freezing litigation that does not involve allegations of fraud, suggesting that these cases may pertain exclusively to securities law violations.
The financial regulator will likely consist of only three members until Trump officially nominates replacements, following the resignations of SEC Chair Gary Gensler and Commissioner Jaime Lizárraga on Jan. 20.
The report implies that the agency Commissioners Hester Peirce and Mark Uyeda, both Republicans, could evaluate the regulator’s regulations regarding the definition of a security and the ongoing legal disputes with crypto firms. Similarly, Trump.
The agency filed a civil case against Ripple Labs in 2020, during the tenure of former Chair Jay Clayton, who alleged that the company had used the XRP token as an unregistered security to raise funds.
The agency has initiated additional lawsuits against US-based companies, such as Coinbase, Binance, Celsius, BlockFi, and Consensys, under Gensler.
Even though some crypto firms have settled charges with the agency or paid fines after going through the courts, others continue to file appeals challenging decisions.
The agency is anticipated to submit an opening brief on January 15 as part of its appeal of a judgment against Ripple. In contrast, a judge has suspended the regulator’s case against Coinbase until an appellate court renders a decision on an interlocutory appeal.
In 2025, What Will SEC Resemble?
Caroline Crenshaw, a Democratic SEC commissioner who assumed office in 2020, is expected to continue to serve at the agency until the end of 2025.
Republican lawmakers reportedly obstructed Democratic senators’ efforts to confirm her nomination for an additional five-year term in December, despite their majority control of the chamber.
During his presidential campaign, Trump committed to the crypto industry to remove Gensler.
He announced the appointment of an AI and crypto czar and a potential replacement for the SEC chair after defeating Democratic Vice President Kamala Harris in the election.
