The U.S. Securities and Exchange Commission (SEC) has taken a notable step in its legal approach to cryptocurrency cases, prompting discussions about the future of its ongoing lawsuit against Ripple.
Crypto attorney James Murphy, widely known as MetaLawMan, drew attention to a recent shift in the SEC’s stance in the Coinbase case. This development has led to speculation that similar changes may emerge in the Ripple case.
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SEC’s Approach in Coinbase Case Signals Possible Strategy Change
The SEC now evaluates Coinbase’s appeal to the 2nd Circuit after deciding not to fight the motion. SEC Chair Gary Gensler led the agency to oppose this appeal in the past but the agency now works against it.
The agency’s recent change of position indicates an evaluation process of its ongoing litigation approach toward cryptocurrency companies.
Murphy stated that if the 2nd Circuit accepts the interlocutory appeal, the SEC would need to provide a legal stance about crypto assets on secondary exchanges as investment contracts.
According to Murphy, there is a possibility that the SEC will avoid developing their position because it will drop the case before reaching that level. Many observers now believe that the SEC might be changing its tough approach toward crypto enforcement matters and might apply it in the case of Ripple.
Potential Impact on Ripple Lawsuit and When the SEC Can Drop the Case
The cryptocurrency community has been closely following the Ripple lawsuit, especially after reports surfaced that the SEC had removed related case information from its official website.
This raised speculation about possible developments in the case and fueled discussions regarding its future direction. Attorney Sherrie, a notable figure in the XRP community, dismissed rumors of a settlement, clarifying that the case is now listed on the Court of Appeals website under a new case number.
Ripple still needs to deliver its brief by April 16 based on the court order. However, Murphy as well as other attorneys including Jeremy Hogan has predicted that based on the anticipated appointment of a new SEC chair, the SEC will choose to drop the case sometime during April or May.
The lawsuit outcomes remain pending while the SEC’s altered approach to previous cases may sway its judgment.
Leadership Transition and Its Effect on Crypto Cases
One of the critical factors influencing the SEC’s next steps is its leadership transition. With no Senate-confirmed chair currently in place, a new appointment is anticipated by March or April. Murphy noted that Paul Atkins, the nominee under the Trump administration, could be the one to put an end to pending crypto cases.
However, it is important to note that the SEC’s decision to settle or dismiss cases does not necessarily depend on a new chairman. The decision requires a vote among the existing three Commissioners.
Given that Hester Peirce and Mark Uyeda currently hold the necessary votes, legal experts suggest that key decisions on crypto lawsuits could still be made before a permanent chair is appointed.
The Road Ahead for the Ripple vs. SEC Case
As the legal proceedings continue, analysts remain divided on whether the SEC will follow the same path with Ripple as it has with Coinbase.
While some believe that the agency’s pivot in the Coinbase case could indicate a more lenient approach, others argue that a significant decision like dropping the Ripple lawsuit would likely require the leadership of a confirmed SEC chair.
MetaLawMan confirmed that the appeal process is still ongoing and emphasized that Ripple’s brief remains due on April 16. With the potential appointment of a new SEC chair around the same time, many in the XRP community are closely monitoring developments to see whether this shift in regulatory approach will extend to Ripple.
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