Two of the three Democratic commissioners at the SEC will be leaving before Donald Trump takes office on Jan. 20.
Once the US Securities and Exchange Commission is under new management in 2025, it could reportedly consider dropping certain crypto enforcement cases.
According to a Jan. 15 Reuters report citing “people briefed on the matter,” the SEC may review its existing court cases against crypto firms in the first few days after US President-elect Donald Trump’s inauguration.
The report suggests the commission could freeze litigation that does not involve fraud allegations, hinting at cases alleging securities law violations only.
After Jan. 20 and the resignations of SEC Chair Gary Gensler and Commissioner Jaime Lizárraga, there will likely be only three members of the financial regulator until Trump officially nominates replacements. The report suggests that SEC Commissioners Hester Peirce and Mark Uyeda — both Republicans, like Trump — could review the regulator’s rules on what constitutes a security and ongoing court cases with crypto firms.
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