Potential Changes in SEC's Cryptocurrency Regulation Approach

According to Foresight News, Blockworks reports that some cryptocurrency-related lawsuits initiated during Gary Gensler's tenure as SEC Chairman might be withdrawn as he prepares to step down. Haynes Boone partner Matthew Frankle suggests that cases not involving substantial fraud and legally permissible for withdrawal could be abandoned. However, he emphasizes that cryptocurrency will remain a significant regulatory focus for the SEC. Frankle anticipates that the new SEC leadership may adopt a regulatory approach that favors clear rules over simply rejecting existing practices. He believes future regulations will aim to provide compliance pathways for industry participants rather than leaving them in unsolvable dilemmas. Nonetheless, he cautions that these changes may take time to materialize, with concrete outcomes expected only after the new chairman assumes office.