Trump’s Presidency Set to End SEC’s Crypto Crackdown

The crypto world is bracing for a seismic shift as President-elect Donald Trump’s second term looms, bringing with it significant changes at the Securities and Exchange Commission (SEC). With SEC Chair Gary Gensler on his way out, many anticipate that the relentless regulatory crackdown on crypto exchanges will ease.

Gensler’s Aggressive Approach Faces Uncertain Future

Gensler’s tenure at the SEC has been nothing short of contentious for crypto. From lawsuits against Binance, Coinbase (COIN), and Kraken to his warnings about the risks of an unregulated market, Gensler wielded enforcement like a sledgehammer. His focus on exchanges—accusing them of selling unregistered securities—sent shockwaves through the industry, but his time has run out before these lawsuits could reach significant conclusions. According to The Wall Street Journal, Gensler defended his actions, stating, “Court after court has agreed with our actions to protect investors.”

Trump Signals a Softer Stance

Trump’s return could flip the script. The president-elect, who once called crypto “based on thin air,” has now embraced the industry’s potential. Trump’s team is reportedly eyeing SEC leadership candidates critical of Gensler’s litigation-heavy approach. Former SEC General Counsel Robert Stebbins told The Wall Street Journal the agency might soon dismiss cases without fraud allegations, saying, “The commission would be likely to pause most of its crypto lawsuits.”

Relief or Rebuild?

While crypto leaders welcome Trump’s stance, some experts believe the SEC’s piecemeal enforcement strategy squandered time that could’ve been spent crafting tailored regulations. Sarah Hammer from the Wharton School noted, “It wasn’t the right approach.” Regardless, the SEC’s future direction under Trump promises a stark departure from the legal battles of Gensler’s era. Whether this means genuine progress or merely a pause in the storm remains to be seen.