- The SEC has closed investigations into Uniswap Labs, Coinbase, OpenSea, and Robinhood.
- Experts believe the SEC may soon dismiss the ongoing Ripple lawsuit over XRP.
- Gensler’s departure signals a shift, with the SEC stepping back on crypto enforcement.
The U.S. Securities and Exchange Commission (SEC) has signaled a change from its aggressive crypto-enforcement approach, with the recent dismissals of crypto-related lawsuits.
The SEC has officially ended its investigation into Uniswap Labs without taking further action. This follows similar closures in cases involving Coinbase, OpenSea, and Robinhood. These developments add to a growing number of legal wins for crypto companies dealing with the SEC since the start of Donald Trump as President.
Will Ripple Lawsuit Be Next to Fall?
The big question now is whether the Ripple lawsuit will be dropped too, just like these other SEC crypto cases.
Industry experts, including former SEC official John Reed Stark, are predicting that this change could be the beginning of the end for the SEC’s high-profile lawsuit against Ripple, with the potential for the case to be dismissed next.
Related: Ripple CEO Applauds SEC for Dropping Coinbase Lawsuit: Time for XRP to Shine?
He argues that the SEC’s choice to drop these appeals shows a larger pullback from its crypto crackdown. This hints that the Ripple lawsuit—a closely watched case in the crypto world—could soon follow.
Sharing his view on X (formerly Twitter), Stark posted, “The Ripple appeal is also most certainly next in line for dismissal. Why? Because the new SEC top brass has made it crystal clear that the SEC will never file another court pleading of any kind arguing that a digital asset is a security, at least not until the Crypto Mom’s Task Force has completed its mission. Buckle up XRP Army, the Ripple Appeal has got to be next on the SEC chopping block.”
The SEC has faced a lot of criticism for its lawsuit against Ripple. The SEC claims Ripple’s XRP token is a security. Ripple has consistently argued that XRP is a digital currency, not a security. The case has become very important because it could set a precedent for how other cryptocurrencies are treated under U.S. law.
Gensler’s Exit and SEC’s Shifting Strategy
The dismissal of the SEC’s crypto-related appeals is particularly important given the timing. The appeals were filed just days before Gary Gensler’s departure as SEC Chair.
Gensler had strongly pushed for stricter rules for the crypto industry. But with his leaving, the agency seems to be changing direction.
Related: SEC and the Future of Crypto Startups – Looking Good
The SEC recently dismissed its appeal to extend the definition of “dealers” to include crypto firms. This rule, which had been challenged in Texas federal court, would have had far-reaching consequences for the crypto industry, requiring firms to register as “dealers” under U.S. securities laws.
Industry groups, including the Blockchain Association and the Crypto Freedom Alliance of Texas, successfully fought back, and now the SEC has officially backed down.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
