The reelection of Donald Trump as president could significantly ease the legal pressures on the crypto industry, according to Consensys CEO Joe Lubin. He believes Trump's administration will bring relief to crypto firms currently entangled in legal disputes with the U.S. Securities and Exchange Commission (SEC).
Legal Battles May Fade Away
Speaking at DevCon 2024 in Thailand, Lubin suggested that ongoing legal cases between crypto firms and the SEC may soon be resolved under Trump’s leadership. “My guess is, in a way that is not embarrassing, they’ll find ways to get the cases dismissed or settled,” Lubin said, adding that while not all cases may be resolved, the industry stands to save “hundreds of millions of dollars” in legal costs.
Lubin's comments came in the wake of Trump's victory in the November 5th election, a win celebrated by the crypto community due to his pro-crypto campaign promises. One of Trump's key pledges was to “fire” SEC Chair Gary Gensler, known for his critical stance on cryptocurrencies. There is optimism that Trump will appoint a cabinet filled with crypto-friendly officials, which could shift the regulatory landscape.
Consensys Lawsuit Against the SEC
Consensys itself has been embroiled in legal battles with the SEC. In April 2024, the company filed a lawsuit against the SEC and its five commissioners, claiming that the regulator was planning to classify Ethereum (ETH) as a security. Lubin believes their lawsuit “lit a fire” that was eventually recognized by the courts.
The legal dispute centered around the SEC’s alleged attempt to argue that Ethereum 2.0 should be regulated differently than the original Ether. According to Lubin, the SEC aimed to separate the new version of Ether from the previous classification, attempting to argue that the upgraded network’s token could now be considered a security.
Court Decisions and Ongoing Legal Battles
On September 19, a Texas federal judge dismissed Consensys’ lawsuit against the SEC, though the legal friction did not end there. Shortly after, the SEC filed a separate case against Consensys, alleging that the company had been acting as an unregistered broker and was involved in the unregistered sale of securities through its MetaMask Swaps feature. This case remains active.
Crypto Industry’s Optimism Post-Election
Lubin is not alone in his optimism. Coinbase CEO Brian Armstrong has also been vocal about the need for change within the SEC, suggesting that the next chair should apologize to Americans for the agency's negative impact on the crypto space.
“The Trump transition team is already moving aggressively,” Lubin noted, expressing confidence that Trump’s political acumen will drive regulatory shifts favorable to the crypto industry. He added, “Whatever you say about him, Trump picks up on the zeitgeist and runs with it.”
As the crypto industry watches Trump's administration take shape, many are hopeful that regulatory clarity and a friendlier approach toward digital assets could be on the horizon, potentially ending years of legal uncertainty for major crypto players like Binance, Coinbase, and Ripple.