Crypto Industry Hopes Trump Victory Will Lead to Major Overhaul of SEC’s Crypto Regulations

• Experts believe a Trump presidency could lead to a less aggressive SEC stance on crypto regulation.
• Trump’s potential SEC leadership changes might settle ongoing enforcement cases, reducing industry confusion.
• The crypto industry’s hopes for a favorable regulatory shift hinge on a Trump victory in the upcoming election.

The crypto industry is eyeing U.S. presidential candidate Donald Trump as a potential catalyst for change in the Securities and Exchange Commission’s (SEC) approach to digital asset regulation.

The SEC’s strict enforcement strategy for crypto regulation has sparked debate. Commissioner Hester Peirce has frequently opposed this method, saying it causes regulatory uncertainty. Critics believe the SEC’s tough approach results in numerous enforcement actions that create confusion instead of clarifying the rules for digital assets.

According to recent updates from Bloomberg, legal experts and crypto policy advisers anticipate a shift in the SEC’s approach should Trump win the upcoming presidential election. Austin Campbell, a blockchain consultant and adjunct professor at Columbia Business School, predicts that Trump’s presidency could lead to a new SEC chair appointed by Republicans, potentially replacing current chair Gary Gensler.

Campbell suggests that this change could result in many ongoing enforcement cases being settled rather than litigated. He argues that the current approach has led to a wide range of case qualities and outcomes, exacerbating confusion in the industry.

Not all experts agree on the extent of potential changes. Emily Meyers, general counsel at Electric Capital, believes that while a Trump administration might bring fewer or different types of enforcement cases, it is unlikely to drop ongoing cases that have reached federal courts. 

Similarly, Ji Kim, chief legal and policy officer at the Crypto Council, notes that a friendlier SEC is contingent on changes in leadership and the composition of commissioners, which is not guaranteed.

This development comes as American voters face a familiar political scene, with Trump going up against President Joe Biden, similar to the 2020 election. Notably, over 35 congressional Democrats, including five senators, have asked Biden to drop out of the race, showing internal party tensions.

The crypto industry appears to be placing its hopes on a Trump victory, expecting it to lead to a more favorable regulatory environment. However, the outcome and its impact on the SEC’s policies remain uncertain as the election approaches.