The reelection of Donald Trump as the 47th president of the United States is fueling optimism within the crypto community, with Consensys CEO Joe Lubin suggesting that ongoing legal battles between crypto firms and the U.S. Securities and Exchange Commission (SEC) may soon dissipate. Speaking at DevCon 2024 in Thailand, Lubin predicted a shift in regulatory dynamics under Trump’s administration.
Trump’s Pro-Crypto Stance Energises the Industry
Trump’s victory on Nov. 5 has been widely celebrated by the crypto sector, largely due to his campaign promises to overhaul the SEC’s leadership. Key among these pledges is the removal of SEC Chair Gary Gensler, a staunch crypto critic, on his first day in office. Additionally, there is growing anticipation that Trump will appoint cabinet members with pro-crypto leanings.
“I think the Trump transition team is already moving aggressively,” Lubin noted, describing Trump as a savvy politician who “picks up on the zeitgeist and runs with it.”
This potential policy shift marks a significant turning point for the U.S. crypto industry, which has faced relentless legal challenges from the SEC. High-profile cases against Binance, Coinbase, and Ripple have dominated headlines, with regulatory uncertainty stifling growth and innovation.
Consensys vs. SEC: A Battle Over Ethereum
Lubin also highlighted Consensys’ ongoing legal challenges with the SEC, including a lawsuit filed by the company in April. The suit alleged that the SEC sought to regulate Ethereum’s native cryptocurrency, Ether (ETH), as a security, signalling a broader effort to control the future of cryptocurrency through enforcement actions.
“I think our lawsuit lit a fire. That fire was picked up by law,” Lubin stated, adding that the SEC’s argument appeared to hinge on distinguishing Ethereum 2.0 from the original Ether.
“They were trying to say, Ether under Ethereum 2.0 is a different thing than Ether,” Lubin explained. “And also that old Ether—fine, whatever Bill Hinman said, we don’t care. Call it a commodity, but this new Ether is obviously a security.”
However, in a setback for Consensys, a Texas federal judge dismissed the lawsuit on Sept. 19. A separate SEC case against the company remains active, accusing Consensys of operating as an unregistered broker and offering unregistered securities through MetaMask Swaps.
Calls for Accountability
The crypto industry’s dissatisfaction with the SEC’s approach is evident. Coinbase CEO Brian Armstrong recently argued that the agency’s next chair should publicly apologise for the harm inflicted on the sector.
As Trump’s presidency unfolds, the crypto world is watching closely, hopeful that a pro-crypto administration will ease regulatory pressures and foster an environment conducive to growth and innovation.
