With the impending departure of SEC Chair Gary Gensler in January, many legal actions against cryptocurrency firms in the United States are anticipated to "quietly fade away," as suggested by Pantera Capital, a prominent crypto asset management firm.
During a recent panel discussion held at the North American Blockchain Summit in Dallas, Texas, Katrina Paglia, Pantera's chief legal officer, expressed optimism about upcoming changes in the regulatory landscape. She stated, “What we’re likely to witness are several settlements coming through."
Paglia indicated that while the SEC might choose to dismiss some claims entirely, she believes it's improbable. “I don’t see that happening,” she remarked, noting that it would be an unusual leap for the commission.
Instead, she predicted there will be settlements that include language along the lines of "neither admit nor deny." “They’re going to quietly resolve things. The defendants will likely compensate the SEC in some manner,” she added.
According to Paglia, this approach allows the SEC to convey a sense of resolution while validating the resources it has invested in these investigations. Such outcomes would be advantageous for the agency in terms of accountability.
On November 21, the SEC confirmed Gensler's resignation, who will officially step down on January 20. Paglia expressed hope that certain Wells notices—formal warnings of potential legal action from the SEC—might similarly "just fade away," suggesting that the agency will reassess its focus on specific entities.
She highlighted a potential shift towards more lenient actions from the SEC, saying, “We hope to see some no-action letters issued by the SEC.” A no-action letter essentially indicates that the agency will not pursue legal action against an entity provided it follows a proposed course of action.
In addition, there are rumors that SEC Commissioner Hester Peirce may oversee crypto regulation until a new chair is appointed, which could lead to the recommendation of more no-action letters. Paglia concluded her insights by suggesting that meaningful changes could materialize as early as January or February, sparking a slowdown in the current wave of litigation.
Under Gensler’s leadership, the SEC has actively pursued legal actions against a plethora of notable cryptocurrency firms, including Ripple, Coinbase, Binance, Kraken, Uniswap, OpenSea, Consensys, Crypto.com, and Robinhood. As the regulatory climate evolves, many stakeholders await further developments with cautious optimism.
