Crypto Legal Battles to Ease After Gensler Steps Down, Pantera Capital Predicts

Pantera’s legal expert suggests that many ongoing securities lawsuits targeting crypto companies in the U.S. could “quietly dissipate” once SEC Chair Gary Gensler steps down in January.

During a panel at the North American Blockchain Summit, Pantera’s Chief Legal Officer, Katrina Paglia, speculated that the end of Gensler’s tenure would likely lead to a wave of settlements. Rather than full dismissals, she anticipated the SEC might push for resolutions where defendants agree to settle without admitting guilt, allowing the cases to gradually fade out.

According to Paglia, while the SEC could potentially file motions to drop the cases entirely, it’s more probable they’ll settle on a middle ground, letting the suits quietly conclude with minor payouts.

Paglia also expressed confidence that several pending Wells notices, or warnings of potential legal action, might be withdrawn, and the SEC could shift its resources away from investigating certain crypto firms. She hinted that the incoming leadership might issue “no-action letters,” which would allow some entities to avoid legal repercussions, signaling a potential easing of regulatory pressure.

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As the industry waits for Gensler’s departure, Paglia noted that SEC Commissioner Hester Peirce may temporarily take over crypto-related matters, possibly guiding the agency toward a more balanced stance. This shift, she said, could signal a “chill” on the current wave of litigation as early as January or February.

Under Gensler, the SEC had launched legal actions against several high-profile crypto firms, including Ripple, Binance, Coinbase, and Kraken, making the anticipated transition an important moment for the industry’s regulatory future.