### A former U.S. Securities and Exchange Commission executive shares an optimistic outlook on the agency’s long-standing legal dispute with Ripple, a San Francisco-based company. John Reed Stark, who once led the SEC Office of Internet Enforcement, recently hinted on X that the SEC may soon withdraw its appeal in the XRP lawsuit, potentially adding Ripple to a growing roster of firms that have momentarily evaded the regulator’s watchful eye.
### SEC Softening Crypto Stance
The SEC appears to be easing its previously aggressive stance on cryptocurrency enforcement that characterized the Gary Gensler era. Under Gensler’s leadership, the SEC issued Wells Notices to several companies, including online brokerage Robinhood, Uniswap Labs, and the NFT marketplace OpenSea. His approach was often criticized for stifling innovation and driving talent away from the industry due to a lack of clear regulatory guidelines before enforcement actions were taken.
However, in a surprising shift, the SEC recently concluded its case against Coinbase, which had been accused of functioning as an unregistered securities broker. The agency has also dropped its investigations into Gemini, Uniswap Labs, Robinhood Crypto, and OpenSea. Earlier this month, a federal judge approved a joint request from the SEC and crypto giant Binance to pause legal proceedings for 60 days. Additionally, the SEC and the controversial Tron founder Justin Sun are exploring a potential resolution to their lawsuit, as indicated in a joint motion filed on Wednesday.
Stark believes that with the SEC having recently abandoned numerous investigations, the dismissal of the ongoing Ripple appeal could be on the horizon. He views these changes as a significant regulatory shift after years of what many have described as “regulation by enforcement” during Gensler’s tenure.
These developments resonate with President Trump’s ambition to establish the United States as the global hub for cryptocurrency, as he nominates and appoints crypto-friendly individuals to key government positions. Gensler stepped down on the same day that the president began his second term. Pro-crypto Mark Uyeda has been appointed to temporarily lead the SEC following the departure of the former chair, who was seen as anti-crypto. Trump has also nominated former SEC Commissioner Paul Atkins for a long-term role at the SEC, although it remains uncertain when the Senate will confirm his appointment.
