Former SEC official John Reed Stark suggests that the Ripple lawsuit could be next in line for fire.
Recently Stark I'll let light flow An unprecedented retreat of the SEC from aggressive enforcement-led regulations on the Crypto industry. He mentioned how previous SEC leadership introduced several enforcement actions against crypto companies and labeled some digital asset securities.
Interestingly, as reflected in the recent decision, the SEC has returned to remove some appeals and enforcement actions. For context, it dropped the case against Coinbase, frozen the Binance lawsuit, and dropped the UNISWAP and Opensea investigation.
The SEC has further retreated from its enforcement stance by dropping two appeals. This revolved around whether crypto businesses should be classified as securities dealers. Several crypto associations, including the CryptoFreedom Alliance in Texas and the Blockchain Association, have led to the incident.
Despite federal court finding that the SEC's expansion of the definition of “dealer” exceeds legal authority, the committee still appeals the ruling on January 17, days before Gary Gensler resigned. did.
However, under acting chairman Mark Ueda, the SEC recently denied the appeal in a one-page notice. A spokesman for the SEC proposed that the committee has decided to accept the federal court decision. They added that pursuing appeals could reduce liquidity in the Treasury market and increase its volatility.
SEC Files Five Cryptody Suspensions
Following this decision, Stark allegedly claimed that the SEC had frozen five crypto-related enforcement measures in the past few days and set new records in the committee.
“Since SEC Chairman Mark Weda took the helm of the SEC, the SEC has now submitted five SEC Crypto Litigation 'Pauses.” ” Stark said.
He further suggested that the SEC is aiming to crush all crypto-related cases until the internal crypto-related task force led by Commissioner Hester Perth concludes its assessment. The task force mentions that it is expected to provide a regulatory framework for cryptographic regulation.
SEC may dismiss Ripple Cases soon
Following the firing of the SEC's crypto-related lawsuit, Stark suggested that the Ripple lawsuit could be the next case to be dismissed.
He explained that the SEC has not pursued a lawsuit claiming that digital assets are security until the Cryptocurrence Task Force has concluded its assessment.
In the meantime, the SEC has not made publicly clear whether it will immediately drop the Ripple appeal. However, several experts, including lawyers Jeremy Hogan and Cherry Empress, suggest that the ripple case is complicated given that the parties have already been ordered by the court.
For context, the court held that Ripple's program sales and other distributions of XRP were not securities, but fined $125 million for violating the law through sales to institutional clients. . Judge Torres also imposed an injunction on Ripple's future institutional sales.
Based on this verdict, the Empress It was speculated The parties may agree to reduce penalties before dismissing the case.
Remember that the SEC submitted an opening appeal brief to the Ripple case within a week of Gensler's departure. Ripple will submit its response in April 2025.
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