The SEC’s Postponement of Crypto Lawsuits

The SEC is postponing actions on prominent crypto enforcement lawsuits, potentially aiming to dismiss them. The deadline for the Coinbase case has already been postponed, but major lawsuits remain in play.

Current Status of the Ripple Lawsuit

Under Gary Gensler’s leadership, the SEC sued Ripple, Kraken, and other firms; however, there seems to be a reduced appetite for these actions now that Gensler has left. The case against Ripple has an upcoming deadline in April, but significant shifts at the SEC could occur by that time.

Impact of Leadership Changes

The Ripple vs SEC case, started in December 2020, is one of the most consequential crypto litigation during Gensler’s chairmanship. While the SEC has deprioritized this case, formal charges have not yet been dropped.

Rumors suggest that the SEC is focusing on cases with imminent deadlines, like Ripple’s, which is set for April 16. Unlike Ripple, the SEC has requested a 30-day extension in its case against Coinbase.

Legislative Developments

The SEC’s willingness to drop cases with lesser consequences suggests it may not be ready to dismiss the Ripple lawsuit, but changes could provide more flexibility. The acting SEC Chair Mark Uyeda may face changes with Paul Atkins’ potential confirmation. Additionally, Congress now has a Crypto Subcommittee investigating regulatory overreach, which may influence the SEC’s direction.

Role of President Trump

President Trump has escalated regulatory oversight with an executive order calling for direct oversight over federal regulators, which could compel the SEC to drop the Ripple lawsuit by April. This controversial order centralizes authority, and while it faces legal challenges, it reveals Trump’s potential impact on US crypto enforcement.

In summary, the SEC’s current leadership reflects a past approach to crypto cases, indeed signaling avenues for change as upcoming political shifts unfold.