The cryptocurrency industry is focusing on the upcoming U.S. presidential election in hopes that a new administration could take a softer stance on regulatory enforcement and end protracted battles with the Securities and Exchange Commission (SEC), Wall Street’s top regulator.

Former President Donald Trump has shown surprising affinity for the $2.5 trillion crypto industry lately, even preparing to host a Bitcoin-focused fundraiser on July 27.

Although Trump criticized cryptocurrencies during his presidency, his recent statements have been more positive. Legal experts predict that the SEC’s aggressive pursuit of the digital asset space may wane if Trump wins the election.

Most Experts Believe Cryptocurrency Cases Could Be Resolved If Trump Is Elected

“A Trump administration will likely seek to reset and rethink the SEC’s crypto regulatory policy,” said Michael Selig, partner at Willkie Farr & Gallagher LLP.

“Such a reset would naturally involve resolving ongoing enforcement actions and investigations filed by the previous administration.”

The SEC, under President Joe Biden, has intensified its scrutiny of the industry, especially following the collapse of crypto exchange FTX in 2022. The regulator has initiated numerous enforcement actions, often accusing exchanges and brokers of failing to properly register under securities law.

SEC Chairman Gary Gensler has consistently maintained that most cryptocurrencies are securities and therefore must register with the agency. Many crypto companies dispute this, arguing that either their tokens are not securities or the registration requirements are unclear.

“Remember, if Trump is elected, Republicans could immediately change who the SEC chairman is,” said Austin Campbell, a blockchain consultant and assistant professor at Columbia Business School.

“What this means in practical terms is that many of these cases, which produce highly variable decisions of highly variable degrees of quality and increased confusion, can be resolved rather than having to move forward.”

Some Experts Think Cryptocurrency Lawsuits Won’t Be Much Impacted Even If Trump Is Elected

But some experts warn that even if Trump wins, the SEC may not drop or resolve ongoing cases. Emily Meyers, general counsel at venture capital firm Electric Capital, noted that securities enforcement cases are typically “apolitical” and that political changes often result in little turnover.

“Pending cases, especially those pending in federal court, are unlikely to be dismissed,” Meyers said.

“It is more likely that a new administration, or even a second Biden administration, will bring fewer or different types of new crypto enforcement cases.”

Ji Kim, chief legal and policy officer at lobby group Crypto Council for Innovation, echoed this sentiment.

“If President Trump is re-elected and SEC Chairman Gensler resigns, we may see the current regulatory-enforcement norm changing,” Kim said and added:

“But this will depend on the leadership and makeup of the commissioners, nothing is guaranteed.”

*This is not investment advice.