US SEC to End Crypto Lawsuits and Update Accounting Rules
The U.S. Securities and Exchange Commission (SEC) is expected to undergo significant changes with the upcoming Trump administration. Key developments include:
- SEC Chair Gary Gensler will step down by January 20.
- The SEC, under Republican Commissioners Mark Uyeda and Hester Peirce, plans to initiate new crypto regulatory guidance.
- During Gensler's tenure, the SEC executed 83 crypto-related enforcement actions, including lawsuits against major firms like Coinbase and Kraken.
- The Trump administration may review ongoing crypto lawsuits and potentially dismiss cases not involving fraud.
- The long-standing Ripple vs. SEC lawsuit could see new developments as the SEC prepares to file an opening brief.
- XRP price increased over 15%, reaching $3.0, following speculation of positive outcomes from the SEC.
- There are calls for clearer regulations defining when cryptocurrencies qualify as securities or commodities.
- The Trump administration may issue an executive order to review existing crypto policies, including potential reversals of certain accounting rules.
- Achieving consensus on crypto regulations may take months due to the complexity of enforcement actions.
- Dismissing multiple enforcement actions could set a risky precedent for politicizing the enforcement process.