Ripple vs. SEC: Former Official Predicts Appeal Could Be Dropped

A former SEC enforcement attorney, John Reed Stark, has predicted that the U.S. Securities and Exchange Commission (SEC) may drop its appeal against Ripple Labs Inc. Stark shared his thoughts on X, pointing to recent regulatory shifts that indicate a potential change in the SEC’s stance on crypto enforcement.

Signs of a Changing SEC Approach

Stark believes the SEC’s decision to close investigations into major crypto firms signals a broader trend. Under the previous administration, SEC Chair Gary Gensler issued Wells Notices to Robinhood, Uniswap, and OpenSea, emphasizing stricter regulatory oversight.

So This is How the SEC Dies.

The Rapid-Fire Demolition of the SEC Crypto-Enforcement Program Continues. SEC Investigations of Uniswap & Opensea Officially Closed. Both Firms Had Received Wells Notices Under SEC Chair Gensler. Dropping of the SEC’s Ripple Appeal Next Up for Sure. pic.twitter.com/6VUDFAX3qK
— John Reed Stark (@JohnReedStark) February 26, 2025

However, in a recent move, the agency ended its investigation into Robinhood Crypto. The SEC informed Robinhood that it no longer intends to proceed with the inquiry, despite previously signaling enforcement action in May 2024.

This shift extends beyond Robinhood. The SEC also dropped its investigations into Uniswap and OpenSea, further supporting the idea that the regulatory body is stepping away from aggressive crypto enforcement. Stark sees these decisions as evidence that the SEC’s appeal against Ripple Labs may follow the same course.

Ripple Case Could Be Next

If the SEC decides to drop its case against Ripple Labs, it would align with the agency’s recent crypto-friendly shift. This development would not be surprising, given the pattern of dismissals across the crypto sector.

At the same time, the SEC has also agreed to dismiss its long-standing case against Coinbase. CEO Brian Armstrong expressed confidence that the exchange would see a full dismissal without penalties. He stated that Coinbase’s decision to challenge the SEC in 2023 has now been justified.

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Industry analysts suggest that the SEC’s softened approach could extend to other high-profile cases, including its lawsuit against Binance and Ripple Labs. If this trend continues, it may mark a significant turning point for crypto regulation in the United States.

Lanre Durojaiye

Mr. Durojaiye Olusola is a finance graduate and cryptocurrency writer with over a year of experience providing market insights and clear, well-researched analysis. Dedicated to helping readers understand blockchain trends and digital asset developments.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.