With Donald Trump’s recent election as the 47th U.S. president, Consensys CEO Joe Lubin anticipates major shifts in the regulatory landscape for cryptocurrency. Speaking at DevCon 2024, Lubin suggested that the Securities and Exchange Commission’s (SEC) legal actions against crypto firms may be “dismissed or settled,” potentially saving the industry hundreds of millions in legal fees.
Lubin’s Predictions on SEC Actions Under Trump
Lubin foresees that the Trump administration, known for its pro-crypto stance, will find ways to resolve or dismiss ongoing SEC cases targeting major crypto players like Binance, Coinbase, and Ripple. These cases have financially burdened the industry, but Lubin is optimistic that with Trump’s pro-crypto policies, much of the SEC’s legal pressure will ease.
Trump’s campaign promises included removing SEC Chair Gary Gensler, a known crypto skeptic, on his first day in office. This commitment, along with expected appointments of “pro-crypto” officials, has sparked optimism within the crypto sector.
Trump’s Swift Actions Raise Industry Optimism
Lubin noted that Trump’s transition team is already “moving aggressively,” signaling a quick pivot toward supportive policies for digital assets. He described Trump as a skilled politician attuned to public sentiment and ready to act on it—a factor that could bode well for crypto’s future in the U.S.
The crypto industry has long viewed the SEC’s stance as obstructive. Lubin highlighted Consensys’ legal efforts against the SEC, stating that their April lawsuit, which accused the SEC of attempting to classify Ether as a security, had “lit a fire” within the regulatory framework. Although a Texas federal judge dismissed the lawsuit on September 19, Consensys remains in legal conflict with the SEC over additional allegations related to MetaMask Swaps.
Challenges to the SEC’s Treatment of Ethereum
Lubin also discussed the SEC’s evolving stance on Ether, particularly as Ethereum 2.0’s upgrade shifts the network toward a proof-of-stake model. The SEC has implied that this upgraded version of Ether may fall under securities regulation, though Lubin emphasized that Ether’s original status as a commodity should remain unaffected.
Calls for Accountability in Crypto Regulation
The crypto community has increasingly criticized the SEC’s approach to digital assets. Recently, Coinbase CEO Brian Armstrong called for the next SEC chair to publicly apologize for the agency’s adverse impact on the industry. As Trump’s administration takes shape, Lubin and other industry leaders are hopeful for a more favorable regulatory environment that could boost growth and innovation within the crypto space.
