With the upcoming change in management of the US Securities and Exchange Commission (SEC) when Donald Trump takes office, reports indicate the agency may halt ongoing enforcement actions against crypto firms that do not involve fraud. A Reuters report suggests this freeze could occur shortly after Trump's inauguration on January 20, as two Democratic commissioners are set to depart. This could leave a primarily Republican commission, which may revise rules concerning what constitutes a security. Notable past cases under previous SEC chair Gary Gensler include lawsuits against Ripple Labs for using XRP as an unregistered security and actions against other firms like Coinbase and Binance. The report also notes that Trump has expressed intentions to remove Gensler and could nominate replacements for the departing SEC members. As the SEC’s future direction remains uncertain, many crypto companies are currently facing litigation or appeals involving previous SEC rulings.

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