SEC Could Dismiss Ripple Lawsuit, Shifting Focus to Regulatory Review

Former SEC official John Reed Stark suggests the agency may drop its lawsuit against Ripple, citing recent decisions by the SEC to pause legal actions against other crypto companies. The change in approach comes as the SEC’s new leadership prioritizes regulatory review rather than enforcement action. 5 litigations pauses related to cryptocurrency cases under the newly appointed acting chair Mark Uyeda. Stark points out that these delays are part of a strategy to allow the SEC’s crypto division, led by Commissioner Hester Peirce, to provide guidance before taking further action. This shift is supported by recent actions against Coinbase, Binance, Uniswap, and OpenSea, which were all previously under investigation. The SEC has also withdrawn its appeal concerning the status of some cryptocurrency businesses as securities dealers. Stark argues that this strategic approach suggests a potential dismissal of the Ripple lawsuit. This will likely be followed by discussions on potential settlements with Ripple over other penalties after Judge Analisa Torres’ ruling regarding XRP sales. However, experts note that legal battles with Ripple are expected to continue due to ongoing negotiations and the case’s complex nature. 2025 marks a significant shift in the SEC’s approach to cryptocurrency regulation.