A new discussion on X (formerly Twitter) has sparked excitement within the XRP community as a prediction of an imminent pause or withdrawal begins to gain momentum. The US Securities and Exchange Commission (SEC) recently placed its enforcement actions against cryptocurrency exchanges Coinbase and Binance on hold.
According to legal expert John Reed Stark, this development signals a broader shift in the agency’s approach to crypto regulation. The move comes as the SEC’s newly established Crypto Task Force reassesses its strategy toward digital asset oversight.
Court filings indicate that the SEC has requested a delay in its response to Coinbase’s appeal, citing the need for further review of crypto-related issues. The request suggests that the agency is reconsidering its stance on whether transactions on Coinbase’s platform fall under securities laws.
A similar agreement was reached in the SEC’s case against Binance, where both parties sought a temporary suspension to allow ongoing regulatory discussions to shape potential resolutions.
Also Read: Ripple Lawsuit Settlement Underway? SEC Schedules Private Meeting to Discuss These Agendas
Shifting SEC Strategy in Crypto Enforcement
The recent developments suggest a major shift in the SEC’s approach to crypto enforcement. Historically, under the leadership of former SEC Chair Gary Gensler, the agency actively pursued digital asset organizations, treating most cryptocurrency assets as securities.
However, with the Coinbase and Binance cases now in limbo, regulatory enforcement in the sector appears to be losing momentum.
Further signs of change within the SEC include internal restructuring. The agency’s Crypto Assets and Cyber Unit has reportedly been renamed the Cyber and Emerging Technologies Unit, indicating a potential de-emphasis on crypto-related enforcement.
Stark noted that key SEC trial attorneys who had successfully led crypto cases are no longer involved in these proceedings, raising questions about the agency’s future direction.
SEC to Pause Ripple Lawsuit Soon?
John Reed Stark, former director of the SEC Internet Enforcement Office, believes that the agency will pause the Ripple appeal soon. “Expect all crypto-related appeals, including the appeal of the Ripple matter, to pause or, even more likely, to be fully withdrawn,” he said. This comes after the SEC has seemingly halted the Coinbase case.
Breaking News: SEC Coinbase Case “Paused” (Just Like the SEC’s Binance Case). Expect the SEC to Similarly “Pause” the Ripple Appeal Soon. The Writing is Now on the Wall: SEC Crypto-Enforcement Has Officially Expired.
On Friday, the U.S. Securities and Exchange Commission (SEC)… pic.twitter.com/PCcwX4oBaH
— John Reed Stark (@JohnReedStark) February 17, 2025
Recently, the SEC told the Second Circuit that its newly formed crypto task force may help resolve its enforcement case against the leading US cryptocurrency exchange. Earlier this February, the SEC also requested a two-month pause in the Binance case.
The drastic changes occurred after SEC Commissioner Mark Uyeda was appointed as the agency’s acting chairman on Jan. 20. Following the appointment, the SEC launched a cryptocurrency-focused task force to create clear rules for the industry last month.
With regulatory changes underway, the SEC may withdraw its appeal in the Ripple case. If the agency continues to pause or settle major crypto-related lawsuits, it could significantly shift the industry’s legal landscape.
What Lies Ahead for Crypto Regulation?
With the SEC’s approach evolving, the future of crypto regulation remains uncertain. Observers await further updates on whether these pauses will lead to settlements, dismissals, or a complete overhaul of the SEC’s enforcement strategy in the sector.
Also Read: Do Not Sell XRP Before July, Investor Reveals Something Huge Coming
