SEC's Crypto Pivot: Delayed Appeal in Ripple Case

The U.S. Securities and Exchange Commission (SEC) has been in the spotlight recently for its handling of crypto-related cases, particularly the ongoing legal battle with Ripple over XRP. While the agency has voluntarily dismissed its appeal in a crypto rulemaking case, it has yet to do the same in the high-profile Ripple lawsuit. Fox Business journalist Eleanor Terrett has shed light on the potential reason behind the SEC's hesitation in withdrawing its appeal in the XRP-centered case.

According to Terrett's report, the SEC has been pausing enforcement cases with looming court deadlines, which is partly why the regulator has not yet abandoned its appeal in the Ripple case. Notably, Ripple has requested a due date of April 16 for its opening brief in the cross-appeal against the SEC. The securities watchdog submitted its own opening brief on January 15, just five days before the inauguration of former President Donald Trump and the exit of former SEC Chairman Gary Gensler.

Following Gensler's departure, the new SEC leadership has signaled a more collaborative approach to policing the crypto market. Acting SEC Chair Mark Uyeda has launched a crypto-focused task force, headed by pro-crypto commissioner Hester Peirce, to formulate clear rules. Meanwhile, President Trump has expressed his desire to make the U.S. the "crypto capital of the world," stating that he had effectively ended the Biden administration's animosity toward Bitcoin and other cryptocurrencies.

The SEC's progress on enforcement actions initiated during Gensler's tenure has stalled, including cases against Binance and Coinbase. Fox Business suggested that the SEC might be waiting for Trump's pick, Paul Atkins, to assume office before making further decisions on these cases. Terrett posited that the SEC leadership might be expecting Atkins' confirmation and working with other stakeholders, such as Congress and the Presidential Working Group on Digital Assets, to fill regulatory gaps that led to these lawsuits.

In addition to easing its stance on lawsuits, the SEC, under Uyeda's leadership, has acknowledged exchange-traded funds (ETFs) based on altcoins such as Ripple-linked XRP. This shift in approach suggests a more open-minded attitude towards the crypto industry, which could potentially lead to a resolution in the ongoing XRP case.