The cryptocurrency industry, long plagued by legal battles and regulatory challenges, may finally be seeing a shift toward a more favorable landscape by 2025. With predictions of ongoing lawsuits against crypto companies quietly dissolving after SEC Chair Gary Gensler’s departure in January 2024, and the potential for new regulations under a future Trump administration, many industry leaders are optimistic that the tide is turning.

End of an Era for Crypto Lawsuits?

Katrina Paglia, the Chief Legal Officer of Pantera Capital, believes that the current wave of lawsuits targeting U.S. crypto companies will “quietly go away” once Gensler steps down. Speaking at the North American Blockchain Summit, Paglia highlighted that many ongoing cases, including high-profile ones involving companies like Ripple, Binance, and Coinbase, could be resolved through settlements. These settlements would likely involve companies agreeing to pay fines without admitting guilt, marking a clean break from years of legal strife.

Paglia’s optimistic view centers on the idea that with new leadership at the SEC, investigations into crypto companies may lose their momentum. This could lead to the gradual dismissal of cases and provide relief for companies that have been entangled in years of uncertainty.

The Possible End of Wells Notices

One of the key issues affecting crypto firms has been the SEC’s issuance of Wells Notices, which are formal warnings that a company could face enforcement actions for violations. Many well-known companies, including Ripple, Binance, and Coinbase, have received these notices. However, Paglia suggests that these notices may soon disappear under a new SEC leadership, particularly if the incoming chair adopts a less aggressive approach to the crypto market.

This potential shift could be a turning point for these companies, allowing them to finally move past the regulatory hurdles that have plagued their operations. With a less combative regulatory environment, these firms could find themselves in a better position to grow and innovate.

The Promise of No-Action Letters

Paglia also anticipates that under new SEC leadership, we could see a rise in “no-action letters,” which are formal declarations from the SEC stating that they will not take enforcement action against a company for pursuing a certain course of action. These letters have the potential to provide much-needed clarity and legal certainty to crypto companies, which have often faced confusion due to unclear regulations.

By issuing more of these letters, the SEC could help ease the uncertainty that has surrounded the crypto industry for years. For companies operating in this space, such letters could act as a shield, allowing them to proceed with business plans without fear of facing sudden regulatory crackdowns.

Hester Peirce’s Influence on Crypto Regulation

With Gensler’s departure, rumors suggest that SEC Commissioner Hester Peirce could play a more prominent role in overseeing crypto regulation until a new chair is appointed. Known for her pro-crypto stance, Peirce has been a vocal advocate for clearer, more consistent rules for the digital asset industry. If she assumes a larger role, Peirce’s approach could help steer the SEC toward a more crypto-friendly path, potentially issuing more no-action letters and encouraging a regulatory environment that fosters innovation rather than stifling it.

Her influence could mark a turning point for the crypto industry, as many believe that her leadership would help balance investor protection with the need for regulatory clarity, offering the industry the stability it has long craved.

Trump’s Potential Crypto-Friendly Guidelines

Looking beyond the SEC, the cryptocurrency industry is also hoping for positive changes at the federal level under a potential second Trump administration. If Trump approves crypto-friendly guidelines by 2025, as some industry leaders anticipate, the legal landscape for crypto companies could become far more navigable. This would be a significant shift after years of regulatory uncertainty under Gensler’s leadership.

Several high-profile figures in the crypto industry, including Consensys CEO Joe Lubin, have expressed confidence that with a new SEC chair and potentially new federal guidelines, crypto lawsuits will either come to an end or be settled. Coinbase CEO Brian Armstrong, however, took a more direct approach, stating that the new SEC chair should apologize to the American public for the harm caused by the previous administration’s heavy-handed approach to regulation.

What’s Next for the Crypto Industry?

As 2025 approaches, the crypto community is on edge, eagerly awaiting the changes that could reshape the industry. While the outcome of ongoing legal cases like Ripple vs. the SEC, as well as issues involving Binance and Coinbase, remains uncertain, the general feeling is one of cautious optimism.

With a new SEC chair and potentially new crypto-friendly policies on the horizon, many believe that the next few years could mark a turning point in how the U.S. government handles the rapidly growing and evolving cryptocurrency market.