SEC lawsuits will ‘quietly go away’ after Gensler steps down: Pantera

As a seasoned researcher with over two decades of experience in financial regulations, I must say that the impending departure of Gary Gensler from the SEC Chair position has sparked a sense of anticipation within the crypto community. Over the years, I’ve seen my fair share of regulatory battles, and the ongoing legal disputes between the SEC and various crypto companies have been particularly intriguing.


According to crypto asset manager Pantera, it’s expected that a significant number of securities lawsuits against U.S.-based crypto companies might be resolved discreetly following the resignation of US Securities and Exchange Commission chair Gary Gensler in January.

During a panel at the North American Blockchain Summit in Dallas, Texas on November 21st, Katrina Paglia, Pantera’s chief legal officer, expressed her belief that we may witness some resolutions or agreements.

Camille Paglia stated that the SEC has the option to simply submit motions to discard all their allegations, but she doubts this will occur, considering it’s a rather extreme step.

She mentioned that it’s possible some of these statements might contain “language that stops short of either admitting or denying” certain points.

“They’re going to quietly go away. The defendants will pay something.”

As an analyst, I can express Paglia’s point by saying: “I anticipate the regulatory body will have an opportunity to issue a significant declaration, leveraging the substantial investment of time and resources the government has dedicated towards these matters. This potential outcome is highly advantageous.

On November 21st, it was announced that Gary Gensler would be leaving his position as SEC Chairman effective January 20th.

Paglia expressed optimism that certain Wells Notices, potential legal warnings from the SEC, might simply fade away without further action, and the regulatory body could decide to halt its investigation into some of the related organizations.

She noted, “We’re optimistic that we might receive written guidance from the SEC stating they won’t suggest any legal action against us, should we move forward with our planned actions.

Additionally, she mentioned that there’s talk that SEC Commissioner Hester Peirce will handle cryptocurrency issues within the organization on an interim basis until a permanent leader is appointed. “We can expect her to propose some ‘no-action waivers.’

She predicted that a significant cool-down, much like what typically occurs in January or February, is imminent for many ongoing legal cases.

In his battle against cryptocurrencies, the Securities and Exchange Commission (SEC), led by Gary Gensler, has initiated legal proceedings against several prominent crypto firms such as Ripple, Coinbase, Binance, Kraken, Uniswap, OpenSea, Consensys, Crypto.com, and Robinhood.

Additional reporting by Turner Wright.

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2024-11-22 07:45