SEC Delays Crypto Lawsuits, Possible Dismissal Looms
The Securities and Exchange Commission (SEC) is postponing major crypto enforcement lawsuits, raising speculation that it could be paving the way for their dismissal. While the SEC has extended the deadline for the Coinbase case, it has not yet dropped its high-profile lawsuits.
Under the leadership of Gary Gensler, the SEC filed lawsuits against Ripple, Kraken, and other companies. However, there is now a shift in focus at the Commission, suggesting a decreased interest in pursuing these cases. The case against Ripple is set for April, but the landscape at the SEC may see significant changes by then.
The Future of the Ripple Lawsuit
The Ripple vs SEC dispute, which began in December 2020, was a pivotal moment in Gensler's tenure as Chair. With Gensler no longer at the helm, the SEC seems to be relegating the lawsuit to a lower priority, though no official decision to drop the charges has been made.
Rumors circulating from Capitol Hill hint that the SEC may be gearing up to potentially drop the case in the future:
"Informed legal sources suggest that the SEC has been focusing on cases with impending court deadlines, perhaps explaining the lack of pause requests in the Ripple and Kraken suits. Ripple's next court deadline is April 16, while Kraken's is March 31," shared journalist Eleanor Terrett.
While the SEC has sought an extension in the Coinbase case, signaling a willingness to back down from legal battles with lesser consequences, the outcome of the XRP case could have far-reaching implications for US crypto regulation.
Anticipated Developments
As the April deadline approaches, changes within the SEC could provide room for the dismissal of the Ripple case. With Acting Chair Mark Uyeda in place, pending confirmation of Paul Atkins might empower the SEC to make bold decisions.
Further, the establishment of Congress's inaugural Crypto Subcommittee and ongoing legislative scrutiny of regulatory boundaries could lend support to the argument that the SEC overstepped in suing Ripple.
Key influencer President Trump's involvement could sway the direction of the case. The planned investigation of the SEC by D.O.G.E., under his executive branch authority, may lead to direct intervention in the lawsuit.
The Role of President Trump
Trump's recent executive order asserting direct oversight over federal regulators has stirred controversy. If implemented by April, this order could compel the SEC to drop the Ripple lawsuit, signaling a major shift in federal authority over regulatory matters.
While facing potential challenges in implementation, this order underscores the avenues through which Trump could shape US crypto enforcement policies. The SEC of yesteryears may be fading into history, but the transition is not yet finalized.