The post Ripple vs SEC Update : Could New SEC Leadership Change the Outcome of XRP Lawsuit? appeared first on Coinpedia Fintech News
Former SEC attorney Marc Fagel has shed light on how pro-crypto leadership at the SEC could influence ongoing crypto lawsuits, including the high-profile Ripple case. While a change in administration might not alter existing litigations, future crypto regulations could see significant shifts. With speculations of Trump’s win, the second thing the crypto community is manifesting is the end of Gary Gensler’s rule.
But many are now questioning if a change in the new SEC chair will be a threat to the existing crypto cases. Let’s find out.
On a Thin Ice- Crypto Cases Future at Stake
Jungle Inc., a crypto expert and influencer asks Marc Fagel about the SEC’s enforcement actions under different political administrations. He quoted that during Chairman Clayton’s time, the SEC rarely focused on crypto, except for clear violations like ICOs. However, under Chairman Gensler, enforcement has increased significantly on Crypto assets due to major fraud cases like FTX and Celsius. Jungle Inc. wonders if a future pro-crypto administration would change this approach or if the SEC would continue its current enforcement until Congress passes new laws.
Impact on Ongoing Crypto Lawsuits
In response, Marc Fagel emphasized that a new SEC administration is unlikely to change the proceedings of previously filed cases like Ripple. Historically, new leadership does not interfere with ongoing enforcement actions. However, he noted that future policies could affect the settlement or appeals of such cases. This means if a pro-crypto administration takes over, the Ripple case settlement might become smoother, and the SEC might refrain from appeals if the ruling favors Ripple.
New Leadership, New Rules!
Fagel further pointed out that enforcement actions are generally apolitical, meaning violations are pursued irrespective of political climate. However, the approach towards crypto could differ with new leadership. If a crypto-friendly administration takes charge, the focus could shift to more lenient policies, impacting the handling of lawsuits involving major firms like Binance, Coinbase, and Consensys. Nevertheless, proven misconduct would still demand regulatory action.
However even though the new administration might adopt a less aggressive stance, Fagel warned that this approach could backfire if another major scandal occurs, forcing the SEC to ramp up enforcement actions once again. He highlighted that substantial fraud cases have driven the current enforcement climate, and any leniency could be short-lived if similar incidents arise.
In short, new SEC leadership might change future crypto rules, but core enforcement will stay focused on legal violations and market misconduct. The Ripple vs SEC case and other major crypto lawsuits will continue under SEC oversight, despite political shifts.
Will this crypto oversight end soon, or there will be more bloodbaths?