Current SEC crypto lawsuits could be dropped, lawyer says

Haynes Boone partner Matthew Frankle thinks that we could see some crypto lawsuits dropped as Gary Gensler’s era ends

article-image

SEC crypto lawsuits

share


This is a segment from the Empire newsletter. To read full editions, subscribe.


It’s SEC Chair Gary Gensler’s last month in office. A new SEC is on the horizon, one that’s potentially far more crypto-friendly. 

Here’s the thing: That doesn’t mean that the old actions (aka lawsuits) taken by the SEC just disappear overnight. It’s unfortunately not that simple. But what happens next is a loaded question right now. 

Haynes Boone’s Matthew Frankle does think there’s a possibility that we will see some of the cases dropped as the regulator recalculates how it plans to approach crypto. 

Frankle said he’s “taking a guess here, but I suspect that many of them will be dropped to the extent they can drop, right? I mean sometimes they actually can’t be dropped, but to the extent they could be dropped, I think probably they will be unless there’s … underlying fraud, and that’s what they’re going after.”

Tie that into Frankle’s belief that crypto will still be a big priority for the SEC and there’s potential for a totally different dialogue around regulation by this time next year.

A crypto-friendly regulator doesn’t mean less regulation, Frankle was careful to explain. 

“I don’t think it’ll be less, I think it’ll be smarter,” he told me. “We’re going to get some regulations, but it’s going to be to clarify things rather than to tell people, ‘hey, what you’re doing is wrong, and by the way, there’s no way you can do it right.’ That’s the big issue, right? You have these big players out there … [that] want to do it the right way, and the SEC is telling them, essentially, there is no way to do it.”

But if you had your heart set on Jan. 20 being the day everything changes, you might need to adjust your expectations. Frankle expects that it’s going to take some time, and we obviously need to see the new head of the SEC confirmed before we can really see the changes play out. 

Perhaps this is the year crypto learns patience. 


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Swiss regulator Gespa is assessing whether FIFA’s tokenized ticket sales for the 2026 World Cup violate gambling laws

by Blockworks /
article-image

The deal gives Ondo Finance SEC-registered broker-dealer, ATS, and transfer agent licenses to operate regulated tokenized securities markets

by Blockworks /
article-image

Ethereum and Solana funds mark industry first as Grayscale adds staking to spot crypto products

by Blockworks /
article-image

US bitcoin ETFs that seen more than $2.2 billion of net inflows over the last four trading days

by Blockworks /
article-image

More than 75 million U.S. Galaxy owners gain integrated Coinbase One access through Samsung Wallet, with global rollout planned

by Blockworks /
article-image

The central bank signed agreements with firms for fraud, payments, and app services ahead of a potential launch

by Blockworks /