Marc Fagel, a former attorney for the Securities and Exchange Commission, has shown how pro-crypto management at the SEC could have an impact on ongoing cryptocurrency disputes, particularly the popular Ripple case. Although it is possible that a change in leadership may not have an impact on ongoing lawsuits, future crypto legislation may undergo significant development.
As rumors circulate that Trump will win the election, members of the cryptocurrency world are also hoping that Gary Gensler’s term will come to an end. On the other hand, many people are now wondering whether or not a new chair of the SEC would impose a risk on current crypto cases. Let’s get into more detail.
Marc Fagel was questioned by Jungle Inc., a crypto specialist and influencer, regarding the enforcement measures taken by the Securities and Exchange Commission (SEC) under various political administrations. Fagel made the observation that under Chairman Clayton’s tenure, the Securities and Exchange Commission (SEC) rarely targeted cryptocurrency, except in cases involving blatant violations such as initial coin offerings (ICOs).
In contrast, under Chairman Gensler, legal proceedings against crypto assets have been increased. This is a direct result of big fraud cases such as FTX and Celsius. Jungle Inc. pondered whether a future administration that is more favorable to cryptocurrencies would change this strategy or whether the Securities and Exchange Commission (SEC) would continue to enforce the law in the same manner until new legislation is passed by Congress.
Implications of a New SEC Chair on Existing Crypto Cases
It was stressed by Fagel that it is highly improbable that a new administration of the SEC will change the proceedings of cases that have already been filed, such as Ripple. Throughout the course of organizational history, the new leadership has not interfered with ongoing enforcement efforts. Nevertheless, he admitted that future rules might have an impact on the decisions regarding settlements or appeals of instances of this nature.
Under these circumstances, the resolution of the Ripple issue may become less complicated if a pro-crypto administration takes control, and the Securities and Exchange Commission (SEC) may choose not to file appeals in the event that the verdict is favorable to Ripple.
In addition, Fagel said that enforcement proceedings are typically apolitical, which means that violations are prosecuted irrespective of the political situation. On the other hand, the stance on cryptocurrency can shift if new leadership comes into power. The processing of cases involving big companies may be affected if a crypto-friendly administration were to assume control of the government. This would require a shift in emphasis toward more forgiving policies. Nevertheless, regulatory action would still be required in the event that misbehavior was demonstrated.
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