The SEC is delaying major lawsuits related to cryptocurrency, possibly to buy time before dismissing them. This tactic was evident in the Coinbase case, where the SEC asked for a deadline extension. However, it has not yet formally dropped its most notable cases.
Under Gary Gensler’s leadership, the SEC took legal action against several crypto firms, including Ripple and Kraken. Now, with changes in leadership, the SEC seems less aggressive. The Ripple lawsuit, filed in December 2020, is a key legal battle in the crypto world. An important court deadline is set for April 16, leading many to believe the SEC may be reconsidering its approach.
Reports indicate that the SEC is focusing on cases with urgent deadlines. Journalist Eleanor Terrett noted that the SEC had not requested delays for the Ripple and Kraken lawsuits, unlike the 30-day extension it sought in the Coinbase case. The SEC has shown a willingness to drop smaller cases, but the XRP case has significant implications for U.S. crypto regulation, making it less likely for the agency to withdraw completely.
By April, changes at the SEC could allow for more flexibility in the Ripple lawsuit. Mark Uyeda is currently the Acting Chair, while Paul Atkins awaits Senate confirmation. If confirmed, Atkins could make major decisions, including potentially dropping the Ripple case.
Additionally, Congress has formed a Crypto Subcommittee to investigate regulatory overreach. If it finds that the SEC overstepped its bounds in the Ripple case, it could pressure the agency to reconsider its position.
Moreover, President Trump may intervene. The Department of Government Oversight (D.O.G.E.) is planning an investigation into SEC enforcement. Trump signed an executive order to establish federal oversight over regulatory agencies like the SEC. If this order is implemented by April, it could compel the SEC to drop the Ripple lawsuit.
This executive order has sparked debate, as it centralizes federal power. Legal experts believe the Supreme Court may challenge it. However, it shows how Trump could reshape U.S. crypto regulation. The SEC that initially sued Ripple is changing, and the evolving political and legal landscape may lead to a different outcome soon.
