The long-drawn-out case between the US Securities and Exchange Commission (SEC) and Ripple appears to be nearing a resolution as an ex-SEC official suggests that the case will be dismissed promptly under “highly favorable terms”.
John Reed Stark, who previously worked as the director of the SEC Internet Enforcement Office for 18 years, shared these insights in a Tuesday post on the X social media platform, highlighting changes in the SEC’s wider approach to crypto enforcement.
Ripple vs. SEC Lawsuit Potential Resolution Prospects
The SEC lawsuits against several high-profile will be ground to a screeching halt as the regulatory agency’s newly established Crypto Task Force seeks to resolve previous enforcement actions against the companies.
In his lengthy post, John Reed Stark noted that the SEC’s suit against Coinbase had been “paused”, bringing attention to a similar pause in its case against Binance.
According to Stark, this pattern indicates that the SEC is reassessing its regulatory outlook on digital assets. In his estimation, the same outcome awaits the SEC’s case against Ripple, which has been embroiled in a lawsuit with the SEC since December 2020.
“The writing is now on the wall: SEC crypto-enforcement has officially expired,” Stark posited. He added: “I guess winning cases is not a measure of success under the new SEC regime. It is instead more worthy of a Scarlet Letter and disbandment.”
A key ruling in July 2023 saw Judge Analisa Torres declare that Ripple’s sale of XRP tokens to retail investors via digital asset exchanges did not violate U.S. securities laws — dealing a huge blow to the SEC’s case.
Stark speculates that the SEC could either pause or completely withdraw its ongoing appeal against Ripple.
“Expect all crypto-related appeals, including the appeal of the Ripple matter, to pause or even more likely, to be fully withdrawn,” he said.
Significant changes are happening at the SEC after Commissioner Mark Uyeda was appointed to take over as the agency’s acting chair before President Trump’s pro-crypto pick, Paul Atkins, is officially confirmed by the U.S. Senate.
Thus according to Stark, active suits, including the XRP litigation, might be resolved in a way that is highly favorable to crypto firms.
“Expect the SEC to direct the SEC trial unit to pause all crypto-related litigation or, alternatively, to settle or dismiss all SEC crypto-related cases expeditiously in highly favorable terms to the crypto-defendants,” Stark opined.
Meanwhile, most crypto spectators believe the positive resolution of the SEC lawsuit would pave the way for U.S. spot XRP ETFs, which Ripple president Monica Long is convinced are “likely to be next in line after Bitcoin and Ethereum”— both of which saw U.S.-listed spot ETFs successfully launched in 2024.
