Key Points:
- Legal expert suggests the SEC may start dropping crypto cases after a new chair is appointed.
- The agency’s shift in the Coinbase case sparks speculation about the Ripple lawsuit.
- Ripple’s appeal-related brief is due on April 16, aligning with SEC leadership changes.
US SEC’s Crypto Lawsuits Under Scrutiny
The U.S. Securities and Exchange Commission’s (SEC) stance on crypto lawsuits is once again making headlines. Legal analysts suggest that the agency might start dropping high-profile cases, including the long-standing Ripple vs. SEC lawsuit.
Renowned crypto attorney James Murphy, also known as MetaLawMan, has shared insights on when the SEC could begin dismissing cases. His analysis of the SEC’s recent shift in the Coinbase lawsuit has sparked fresh speculation on whether the agency will soften its approach toward crypto firms.
SEC’s Shift in the Coinbase Case
James Murphy recently highlighted a notable change in the SEC’s legal approach, particularly in the case against Coinbase. The agency has chosen not to oppose Coinbase’s motion for an interlocutory appeal at the 2nd Circuit, marking a departure from its earlier aggressive stance under Chair Gary Gensler.
Murphy noted:
“If the 2nd Circuit accepts the appeal, the SEC will have a few months before it must take a formal legal position on whether crypto assets traded on secondary exchanges are investment contracts.”
This change has led to speculation that the SEC could settle or dismiss cases rather than fight lengthy legal battles. Many in the crypto community now wonder if the Ripple vs. SEC lawsuit will follow a similar trajectory.
When Will the SEC Start Dropping Crypto Cases?
A crucial factor in the SEC’s decision-making process is leadership uncertainty. With no Senate-confirmed chair currently in place, Murphy predicts that a new chair will be appointed by March or April 2025.
When asked about the SEC’s timeline for dropping cases, Murphy responded:
“No Senate-confirmed Chairman yet. Probably March or April time frame. Paul Atkins may be one of President Trump’s least controversial nominations.”
However, he also pointed out that even in the absence of a confirmed chair, decisions can still be made by the three current SEC commissioners—Hester Peirce and Mark Uyeda—who have the authority to vote on case settlements or dismissals.
What’s Next for the Ripple vs. SEC Lawsuit?
The Ripple lawsuit remains a major talking point in the crypto world, especially after reports surfaced that the SEC had removed the case from its website. However, attorney Sherrie, a prominent member of the XRP legal community, clarified that the case is now listed under the Court of Appeals website due to its new case number.
Here’s what’s next for the lawsuit:
April 16, 2025: Ripple is expected to submit its appeal-related brief. April – May 2025: Possible SEC leadership changes could influence the case’s direction. Potential Outcomes: The SEC might choose to settle, dismiss, or continue the lawsuit.
Crypto attorney Jeremy Hogan has also suggested that the SEC could withdraw the case around April or May, aligning with the expected appointment of a new chair.
Will the SEC Drop Ripple’s Case?
While some experts see the SEC’s Coinbase case pivot as a sign that Ripple could also see a favorable outcome, others remain cautious.
Attorney Sherrie believes that an acting SEC chair is unlikely to make a major decision like dropping the lawsuit. However, when asked for an update on the appeal, MetaLawMan responded:
“Still chugging along.”
As the legal battle continues, XRP holders and the broader crypto market await April 2025, a period that could mark a turning point in both the SEC’s crypto regulation strategy and the Ripple lawsuit’s fate.
