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The recent outcome of the US presidential elections, in which Donald Trump emerged as President, may mean significant changes in regulating cryptocurrencies. Most industry leaders, including key figures like the Chief Legal Officer of Coinbase, Paul Grewal, expect changes in the US Securities and Exchange Commission (SEC) approach to digital assets.
Trump’s public affirmation of making America the “crypto capital of the world,” plus his declared plans to replace SEC Chair Gary Gensler on his first working day in office, have offered hope to the industry to look forward to a positive change on the regulatory front.
Paul Grewal voiced optimism that a Trump administration would bring a new chair to the SEC, potentially marking a more favourable regulatory direction. Speaking to Fox Business, he suggested that a fresh SEC leadership might prioritize targeting fraud and scams over broader actions against legitimate crypto businesses. Grewal emphasized that the current approach under Gensler, which has involved numerous legal actions against digital asset companies, could benefit from a more balanced focus.
According to Grewal, voters have expressed dissatisfaction with the SEC’s ongoing litigation strategies and prefer clear, defined regulations. He encouraged the SEC to shift from a lawsuit-heavy approach to one that engages directly with crypto firms to foster regulatory clarity. Grewal posted on social media platform X, noting that voters “want change” and that the SEC should “start talking to crypto” and initiate rulemaking.
Ripple CEO Brad Garlinghouse joined Grewal in calling for a reevaluation of the SEC’s approach, specifically targeting what he described as regulatory overreach. In a recent post, Garlinghouse urged Democratic leaders to address Gensler’s actions, which he claims exceed legal authority.
He suggested that dissatisfaction with these policies could impact voter support for Democrats, particularly in swing states. Garlinghouse also noted that high-profile crypto critics like Gensler and Senator Elizabeth Warren may have unintentionally fueled a “Red Reset,” possibly influencing voter sentiment toward more crypto-supportive policies.
Garlinghouse’s comments echo industry fears that policies under Gensler’s SEC could hamper innovation within the US crypto space. He has stated that a change in regulation trends could benefit the industry, consumers, and the economy.
More pro-crypto politicians joined Congress after the 2024 election, and reports show that over 200 pro-crypto lawmakers were elected. This includes 224 representatives in the House and 14 senators, all advocating for clear and supportive crypto policies. Many in the industry hope this shift in Congress will lead to legislative initiatives supporting crypto-friendly regulations and addressing existing challenges in SEC oversight.
