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A former SEC enforcement attorney, John Reed Stark, made an epic prediction regarding the ongoing Ripple Labs Inc. case with the U.S. Securities and Exchange Commission (SEC). Stark’s prediction was posted on X as he believes that current signals show the SEC might drop its case against Ripple.
SEC’s changing approach to crypto enforcement
Stark considers recent happenings within the regulatory body indicative that the Ripple appeal could be dropped. Under the former administration, Gary Gensler had served Robinhood, Uniswap and OpenSea with Wells Notices.
Tomiwabold OlajideThe former SEC boss was always calling for stricter regulatory oversight over crypto.
However, in a dramatic turn of events, the U.S. SEC has dropped its investigation against Robinhood Crypto. The agency said it does not intend to proceed with the inquiry following the Wells Notice served to Robinhood in May 2024.
Stark noted that with the regulatory agency closing investigations, not just for Robinhood but also for Uniswap and OpenSea, there is more to come. He suggests that the SEC is shifting away from aggressive crypto enforcement, which characterized Gensler's tenure.
The former SEC enforcement attorney says the current development hints that the SEC’s appeal against Ripple Labs could follow the same pattern.
If the SEC drops the Ripple Labs lawsuit, it might not come as a shock, as it aligns with the new crypto-friendly disposition of the regulatory body.
Coinbase case dismissal strengthens Ripple’s prospects
Meanwhile, in principle, the U.S. SEC has also agreed to dismiss the Coinbase case after years of litigation. Brian Armstrong, Coinbase CEO, said the exchange expects a full dismissal without any fines or charges.
Gamza KhanzadaevArmstrong explained that he feels vindicated for engaging in the litigation back in 2023, when the regulatory body took the exchange to court.
Analysts believe the remaining two high-profile cases with Binance and Ripple Labs might also be withdrawn in a new trend.
Dan Burgin
Vladislav Sopov