Ripple’s Victory on the Horizon: Former SEC Official Predicts End of Ripple Appeal#
The U.S. Securities and Exchange Commission (SEC) appears to be retreating from its once-aggressive crypto enforcement campaign. With legal setbacks piling up and internal restructuring underway, the agency’s future role in crypto regulation seems to be shifting dramatically.
Former SEC Enforcement Chief John Reed Stark took to social media platform X this week to highlight the shift, boldly stating, “As predicted, like the rest of the SEC’s crypto-enforcement program, the SEC Coinbase case is dead.” He went on to emphasize, “The SEC Ripple appeal is obviously next on the chopping block.”
Ripple Appeal Faces Likely Dismissal
Stark explained that the SEC’s recent legal retreats signal a broader shift in its regulatory strategy. After withdrawing its appeal regarding whether crypto firms should be classified as securities dealers, the agency seems to be stepping back from its efforts to expand its authority over digital assets. This withdrawal came after facing intense legal resistance from industry groups, marking a significant turning point for the SEC.
The shift has gained momentum under Acting SEC Chair Mark Uyeda, who has overseen several pauses in crypto enforcement since assuming leadership. Stark suggested that Ripple Labs’ ongoing legal battle with the SEC is poised to follow a similar path. “The Ripple appeal is also most certainly next in line for dismissal,” he stated. “Why? Because the new SEC top brass has made it crystal clear that the SEC will never file another court pleading of any kind arguing that a digital asset is a security, at least not until the Crypto Mom’s task force has completed its mission.”
A New Era for Crypto Regulation
This apparent change in direction aligns with a broader overhaul of the SEC’s enforcement approach. The agency recently rebranded its crypto unit as a cyber unit, signaling a pivot in focus. Additionally, key figures involved in crypto litigation have been removed, further indicating a departure from previous strategies.
Stark also referenced a recent letter from the Department of Justice (DOJ), which challenged the legal foundation of the SEC’s administrative law judges. In light of this development, he predicted sweeping personnel changes within the agency. “Expect all SEC administrative law judges to be fired forthwith,” Stark asserted, underscoring the far-reaching implications of the SEC’s evolving stance.
Implications for the Crypto Industry
If the SEC indeed drops its Ripple appeal, it would mark a pivotal victory for Ripple Labs and the broader cryptocurrency industry. Such a move could set a precedent limiting the SEC’s authority over digital assets, potentially opening the door for more innovation and growth within the crypto space.
