A former U.S. Securities and Exchange Commission exec has made a spectacular prediction regarding the agency’s years-long legal battle with San Francisco-based firm Ripple. John Reed Stark, who previously served as chief of the SEC Office of Internet Enforcement, suggested on X that the SEC is on track to drop its appeal in the XRP lawsuit, adding Ripple to a growing list of firms that have escaped the regulator’s scrutiny for now. SEC Softening Crypto Stance The SEC is rolling back its hostile crypto enforcement campaign that defined the Gary Gensler era. During Gensler’s reign, the SEC has issued Wells Notices to multiple firms, including online brokerage Robinhood, Uniswap Labs, and NFT marketplace OpenSea. The former SEC chairman’s actions stifled innovation and drove talent away from the sector by refusing to formulate rules before it brought an enforcement action. But in a dramatic turn of events, the SEC recently closed its case against leading crypto exchange Coinbase, the exchange was accused of operating as an unregistered securities broker. Similarly, the regulator has since dropped its probe into Gemini, Uniswap Labs, Robinhood Crypto, and OpenSea. Earlier this month, a federal judge granted a joint request by the SEC and the crypto giant Binance to pause proceedings for 60 days . And more recently, the SEC and controversial Tron founder Justin Sun are looking into potentially resolving their lawsuit, according to a Wednesday joint motion. Stark suggested that, with the top securities watchdog having dropped a slew of probes recently, the dismissal of the ongoing Ripple appeal is next. In his opinion, these shifts mark a notable regulatory realignment after years of what many characterized as “regulation by enforcement” under the previous Gensler leadership. https://twitter.com/JohnReedStark/status/1894717997467484384 These developments align with President Trump’s stated ambition to position the United States as the world’s crypto capital, nominating and appointing crypto-friendly public servants to his government. Gensler departed the same day that the president started his second presidential term. Pro-Crypto Mark Uyeda was appointed to temporarily lead the SEC after the anti-crypto former chair’s exit. Trump has nominated former SEC Commissioner Paul Atkins to run the SEC on a long-term basis. However, it is unclear when Atkins’ appointment will be confirmed by the Senate.
