How Will Ripple (XRP) and Other Cryptocurrencies With SEC Lawsuits Be Affected If Donald Trump Is Elected President? 4 Experts Speak Out

Krypto para The industry is focusing on the upcoming U.S. presidential election in hopes that a new administration could adopt a softer stance on regulatory enforcement and end long-running battles with the Securities and Exchange Commission (SEC), Wall Street’s top regulator.

Former President Donald Trump has recently shown a surprising affinity for the $2.5 trillion crypto industry, even set to host a Bitcoin-focused fundraiser on July 27.

While Trump has been critical of cryptocurrencies during his presidency, his recent statements have been more positive. Legal experts predict that the SEC’s aggressive pursuit of the digital asset space could wane if Trump wins the election.

Majority of Experts Believe Cryptocurrency Cases Could Be Solved If Trump Is Elected

“A Trump administration would likely attempt to reset and rethink the SEC’s crypto regulatory policy,” said Michael Selig, a partner at Willkie Farr & Gallagher LLP.

“Such a reset would naturally involve resolving ongoing enforcement actions and investigations opened by the previous administration.”

The SEC under President Joe Biden has intensified its scrutiny of the industry, particularly following the collapse of crypto exchange FTX in 2022. The regulator has initiated numerous enforcement actions, typically accusing exchanges and brokerages of failing to properly register under securities laws.

SEC Chairman Gary Gensler has consistently claimed that most cryptocurrencies are securities and therefore must register with the agency. Many crypto companies dispute this, arguing that either their tokens are not securities or that the registration requirements are unclear.

“Remember, if Trump gets elected, the Republicans can immediately change who the SEC chairman is,” said Austin Campbell, a blockchain consultant and adjunct professor at Columbia Business School.

“What this means in practical terms is that many of these cases that produce highly variable decisions of highly variable quality and increasing confusion can be resolved rather than having to move forward.”

Some Experts Think Cryptocurrency Lawsuits Won’t Be Affected Even If Trump Is Elected

But some experts warn that even if Trump wins, the SEC may not drop or resolve the ongoing cases. Securities enforcement cases are typically “apolitical,” with political shifts often resulting in few personnel changes, said Emily Meyers, general counsel at venture capital firm Electric Capital.

“It is very unlikely that the pending cases, especially those pending in federal court, will be dismissed,” Meyers said.

“It is more likely that a new administration, or even a second Biden administration, will bring fewer or different types of new crypto enforcement cases.”

Ji Kim, head of legal and policy at lobby group Crypto Council for Innovation, echoed this sentiment.

“If President Trump is re-elected and SEC Chairman Gensler resigns, we may see the current regulation-enforcement norm change,” Kim said.

“But that will depend on the leadership and makeup of the commissioners, nothing is guaranteed.”

*This is not investment advice.