SEC Reshuffles Crypto Lawsuits—Is Ripple on the Verge of Legal Victory?

CN
1 day ago

The U.S. Securities and Exchange Commission (SEC) is prioritizing cryptocurrency cases with imminent court deadlines while pausing others, Fox Business journalist Eleanor Terrett reported on Feb. 19. She shared on social media platform X: “I’m told by multiple legal sources that the SEC has been prioritizing cases with imminent court deadlines, which is one explanation for why we haven’t seen pause requests in the Ripple and Kraken cases.” While the SEC has delayed some lawsuits, others continue as scheduled. Terrett further stated:

Ripple’s next court deadline is April 16 and it looks like Kraken’s is March 31. The Binance case has been put on ice until April 14, Lejilex until April 11 and Coinbase + SEC agreed to an extension on the deadline for the agency to respond to Coinbase’s request to leave to file an interlocutory appeal until March 14.

Some analysts believe the SEC may be preparing for a leadership transition, as President Donald Trump’s nominee for SEC chair, Paul Atkins, moves closer to confirmation. Terrett speculated in another X post: “It’s possible SEC leadership is expecting Donald Trump’s pick for chair Paul Atkins to be on his way to getting confirmed by that time.” Regarding Atkins’ confirmation timeline, Terrett noted: “No concrete date yet … Not saying the timelines will be the same but for reference, Gensler had his hearing in March of 2021 and was confirmed in April.”

The SEC recently agreed to pause its lawsuit against Binance for 60 days, following a joint request citing the potential impact of a newly formed SEC crypto task force. This task force, led by Commissioner Hester Peirce, aims to develop a clearer regulatory framework for cryptocurrencies. The pause reflects a broader move towards a more crypto-friendly stance under President Donald Trump’s administration, which seeks to position the U.S. as a global hub for the industry. In addition, the Commission has agreed to pause its lawsuit against Coinbase Inc. This decision allows Coinbase to appeal a previous ruling that denied its motion to dismiss the SEC’s lawsuit.

Terrett concluded:

In the interim, the crypto task force, Congress and the Presidential Working Group on Digital Assets are presumably working to fill the regulatory gaps that led to these lawsuits being brought in the first place.

In January, President Trump signed an executive order establishing the Presidential Working Group on Digital Asset Markets, aiming to develop a federal regulatory framework for digital assets and evaluate the creation of a national bitcoin stockpile. This initiative, chaired by White House AI and Crypto Czar David Sacks, includes key figures such as the Treasury Secretary and the SEC Chair. These actions underscore the administration’s commitment to positioning the U.S. as a leader in the digital asset economy.

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