"SEC's Crypto Crackdown: Ripple's April Showdown Looms"

The U.S. Securities and Exchange Commission (SEC) has been delaying actions on prominent crypto enforcement lawsuits, potentially buying time to dismiss them. The Commission has already postponed the deadline for the Coinbase case but has not yet dropped its biggest lawsuits, including the one against Ripple.

Under former Chair Gary Gensler, the SEC sued Ripple, Kraken, and other firms. However, the Commission has since reduced its appetite for these actions. The SEC's case against Ripple has a deadline in April, but the Commission may change dramatically by then.

The Ripple vs. SEC case, which began in December 2020, was one of the most impactful crypto enforcement litigations during Gensler's tenure as Chair. Now that Gensler is gone, the Commission is de-prioritizing the suit, but it has not formally dropped the charges. According to rumors from Capitol Hill, the SEC may be preparing to dismiss the case further down the line.

The SEC has shown a willingness to drop legal battles with lighter consequences, but the XRP case could have profound implications for U.S. crypto regulation. By the time the April deadline comes around, a few changes at the SEC could give it more wiggle room to dismiss the Ripple case.

First, Mark Uyeda is only the Acting Chair, as Paul Atkins has yet to pass his confirmation hearing. If the Senate formally approves Atkins, it may give him a firm mandate to make controversial decisions. Additionally, Congress has its first-ever Crypto Subcommittee, and other legislative bodies are actively investigating regulatory overreach. The findings of these bodies could help sell the message that the SEC overstepped its jurisdiction to sue Ripple.

Most importantly, President Trump could throw his weight behind the effort. Already, the Department of Justice (DOJ) is planning to investigate the SEC, and it draws authority from the executive branch. Last night, Trump significantly escalated his policies with an executive order mandating direct oversight over federal regulators. If this is instituted by April, the U.S. President could simply compel the SEC to drop its Ripple lawsuit.

However, this executive order has proven extremely controversial. It effectively centralizes federal authority, and the Supreme Court may strike it down. Still, it illustrates the many avenues by which Trump could curtail U.S. crypto enforcement. The SEC that first sued Ripple is