According to crypto asset manager Pantera, many securities lawsuits against crypto companies in the U.S. might quietly fade after SEC Chair Gary Gensler steps down in January. However, Paglia suggested that while the SEC could technically file motions to dismiss and drop all charges, such a scenario is highly unlikely. “I don’t think that’s going to happen. That’s just too much of a stretch,” she remarked.
Paglia said there will probably be some “neither admit nor deny” kind of language in response to these claims. In addition, she added that the regulator is likely to issue a statement and achieve some outcome that justifies the time and effort the government has invested in these investigations, which she described as “highly beneficial.”
Will Gensler’s exit ease SEC crypto actions?
The SEC announced on Nov. 21 that Gary Gensler would step down as chair on Jan. 20. Paglia expressed optimism that some of the Wells notices, formal warnings of potential legal action from the SEC, might simply “fade away,” with the regulator likely scaling back its investigations into certain organizations. A no-action letter is a written response from the agency stating it won’t pursue legal action against an entity for following a specific plan or course of action.
She also mentioned rumours that SEC Commissioner Hester Peirce might temporarily oversee the agency’s crypto-related matters until a permanent chair is appointed. Paglia concluded that this might happen soon. She said:
We’re anticipating a January or February cool-down in much of the ongoing litigation.
Under Gary Gensler’s leadership, the SEC has aggressively targeted the crypto industry, filing lawsuits against major players like Ripple, Coinbase, Binance, Kraken, Uniswap, OpenSea, Consensys, Crypto.com, and Robinhood.
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