John Reed Stark, a former SEC enforcement attorney, predicted the potential dismissal of the case against Ripple Labs amid changes in SEC's crypto regulation approach.
SEC's Changing Approach to Crypto Enforcement
Stark considers recent events within the regulator a sign that the Ripple appeal might be dropped. During the previous administration, under SEC Chair Gary Gensler, companies like Robinhood, Uniswap, and OpenSea received Wells Notices. However, the SEC has since dropped the investigation against Robinhood Crypto and closed investigations into Uniswap and OpenSea, indicating a shift in crypto enforcement.
Coinbase Case Dismissal Strengthens Ripple's Prospects
Simultaneously, the SEC has agreed to dismiss the case against Coinbase after years of litigation. Coinbase CEO Brian Armstrong stated the exchange expects a full dismissal without fines or charges. This may indicate that the cases against Binance and Ripple might also be dropped as part of the new policy.
Potential Implications for Ripple
According to Stark, if the SEC drops the case against Ripple Labs, it aligns with the regulatory body's newly adopted crypto-friendly disposition. Such a decision might not come as a surprise considering the recent strategic shift of the SEC.
The possible dismissal of the SEC's case against Ripple signifies a major shift in the regulator's approach to cryptocurrencies, potentially impacting the entire industry.
