SEC's Crypto Shift: Ripple's Legal Battle Nears Swift Resolution

The prolonged legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple appears to be nearing a resolution, with an ex-SEC official predicting a swift and favorable outcome for the cryptocurrency company. John Reed Stark, who previously served as the director of the SEC Internet Enforcement Office for 18 years, shared his insights on the X social media platform, highlighting changes in the SEC's approach to crypto enforcement.

In his post, Stark noted that the SEC's lawsuits against several high-profile companies, including Coinbase and Binance, had been "paused," indicating a shift in the regulatory agency's stance on digital assets. He suggested that the same outcome awaits the SEC's case against Ripple, which has been ongoing since December 2020.

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 significant blow to the SEC's case. Stark speculates that the SEC could either pause or completely withdraw its ongoing appeal against Ripple.

Significant changes are happening at the SEC following the appointment of Commissioner Mark Uyeda as the agency's acting chair, with President Trump's pro-crypto pick, Paul Atkins, expected to be officially confirmed by the U.S. Senate. According to Stark, active suits, including the XRP litigation, might be resolved in a way that is highly favorable to crypto firms.

Stark predicts that the SEC will direct its trial unit to pause all crypto-related litigation or, alternatively, settle or dismiss all SEC crypto-related cases expeditiously in highly favorable terms to the crypto-defendants. Meanwhile, most crypto spectators believe that a 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."