SEC's Shift: Ending Lawsuits Against Coinbase, Binance, Ripple

The Securities and Exchange Commission (SEC) may be considering ending its lawsuits against prominent cryptocurrency companies such as Coinbase, Binance, and Ripple, according to a former SEC official. John Reed Stark, a former SEC official, believes that the regulator's newly formed cryptocurrency working group is seeking to resolve past enforcement actions against these exchanges.

Stark's analysis is based on the SEC's request for a 28-day extension to respond to Coinbase's petition to allow an appeal. In a joint motion, the SEC stated that its review of cryptocurrency-related issues is "ongoing," and the extension will give the regulator time for "appropriate review" as it prepares its response to Coinbase's petition. Stark interpreted this as a sign that the SEC's lawsuit against Coinbase may already be over.

Similarly, Stark estimated that the SEC's lawsuit against Binance would also see a similar outcome. He cited a joint motion filed on February 11, in which both parties believed that the SEC's cryptocurrency special task force "may impact and facilitate the potential resolution of this case."

Ripple, which has been involved in a lawsuit with the SEC since 2020, is also expecting a potential resolution. The company is "expecting all cryptocurrency-related appeals, including Ripple's case, to be paused, and even more likely to be fully withdrawn," according to Stark's analysis.

The SEC's potential shift in approach towards cryptocurrency companies comes as the regulator seeks to better understand and regulate the rapidly evolving industry. The formation of the cryptocurrency working group and the extension requests suggest that the SEC is taking a more measured approach to enforcement actions against these companies.

However, it is important to note that the SEC has not officially announced any changes to its enforcement strategy regarding cryptocurrency companies. The outcome of the ongoing lawsuits and the regulator's future approach to the industry remain uncertain. As the situation develops, investors and industry participants should closely monitor the SEC's actions and any official announcements regarding its enforcement strategy.