The Securities and Exchange Commission's (SEC) lawsuits against cryptocurrency companies will likely reach settlements once Chair Gary Gensler steps down in January 2025, according to crypto asset manager Pantera's chief legal officer Katrina Paglia.
What Happened: Speaking at the North American Blockchain Summit in Dallas on Thursday, Paglia said, according to Cointelegraph that while the SEC won't completely withdraw its claims, many cases will "quietly go away" with defendants paying settlements under "neither admit nor deny" terms.
"The regulator will get to make some level of a statement and get something for the value of time and energy spent," Paglia said, noting this would be "very beneficial" for resolving the extensive litigation.
The comments come as President-elect Donald Trump's transition team actively shapes what appears to be a dramatically different approach to crypto regulation.
Why It Matters: The incoming administration is reportedly vetting candidates for the first-ever White House cryptocurrency policy role while major industry players like Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong engage in high-level discussions.
Industry experts see the potential for significant policy shifts, with Hunting Hill Global Capital's CIO Adam Guren emphasizing the need for "thoughtful policy" and clear definitions for digital assets. "Well-defined classifications would encourage engagement from both individual and institutional investors," Guren noted.
The market has responded positively to these developments, with Bitcoin (CRYPTO: BTC) approaching $100,000 amid reports that companies including Ripple (CRYPTO: XRP), Kraken, and Circle (CRYPTO: USD) are seeking representation on Trump's promised crypto advisory council.
The SEC under Gensler's leadership has pursued actions against numerous high-profile crypto companies, including Ripple, Binance (CRYPTO: BNB), Kraken, and others, in what many in the industry have characterized as an aggressive regulatory approach.
- Bitcoin's Path To $100K 'Inevitable' But Crypto Community Is 'Leveraged To The Gills,' Warns Galaxy's Mike Novogratz, Predicts Correction To $80K Ahead
SEC Gary Gensler. Photo by Third Way Think Tank on Flickr
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
