TLDR
- SEC signals major shift in crypto enforcement strategy by pausing cases against Coinbase and Binance, with Ripple lawsuit expected to follow similar pattern
- Former SEC official John Reed Stark notes agency’s crypto unit has been rebranded to “Cyber and Emerging Technologies Unit,” suggesting reduced focus on crypto cases
- Joint motions filed for delays in Coinbase and Binance cases as SEC’s new Crypto Task Force works toward potential resolutions
- Legal experts predict likely settlement in Ripple case before any XRP ETF approval, with approval chances rising to 80% on polymarket
- XRP currently trading at $2.52, down 2% intraday, with 24-hour range of $2.47-$2.62
The U.S. Securities and Exchange Commission (SEC) has begun to pause its legal proceedings against major cryptocurrency companies, marking what appears to be a change in its enforcement approach. Recent developments show the agency delaying cases against both Coinbase and Binance, with experts predicting the long-running Ripple lawsuit may face a similar fate.
On Friday, the SEC informed the Second Circuit Court that its newly formed Crypto Task Force could lead to a resolution in the Coinbase case. The agency requested additional time before responding to Coinbase’s appeal regarding the application of securities laws to transactions on its platform.
This move followed a similar action in the Binance case, where both parties filed a joint motion seeking a two-month pause in proceedings. These delays represent a departure from the SEC’s previous aggressive stance toward cryptocurrency companies.
Former SEC official John Reed Stark brought attention to these changes through social media, highlighting a key organizational shift within the agency. The unit previously known as the “Crypto Assets and Cyber Unit” has been renamed to the “Cyber and Emerging Technologies Unit,” suggesting a broader focus beyond cryptocurrency enforcement.
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
The timing of these changes coincides with the anticipated leadership transition at the SEC, as Paul Atkins prepares to take charge of the agency. This leadership change appears to be influencing the direction of crypto-related enforcement actions.
SEC’s Crypto Shift
In the Coinbase case, both the SEC and the cryptocurrency exchange agreed to delay court proceedings, citing ongoing regulatory discussions. This collaborative approach marks a shift from the previously adversarial relationship between the agency and crypto companies.
The same pattern emerged in the Binance case, where both parties agreed that a temporary pause would allow the SEC to reassess its position on digital assets. This reassessment period indicates the agency may be reconsidering its overall approach to cryptocurrency regulation.
Legal experts watching these developments have turned their attention to the Ripple lawsuit, which has been a central focus of the crypto industry since its inception. Attorney Jeremy Hogan suggests that a settlement in the Ripple case might precede any approval of an XRP exchange-traded fund (ETF).
The chances of an XRP ETF approval have increased to 80% according to polymarket, and the SEC has acknowledged three ETF applications so far. These developments add weight to speculation about a potential end to the Ripple lawsuit.
The legal dispute between the SEC and Ripple has centered on whether XRP should be classified as a security. A partial court ruling in 2023 determined that XRP was not a security in certain transactions, though the SEC has continued to challenge this decision.
Key SEC trial lawyers who previously led these cases have been reassigned to other duties, further supporting the notion that the agency is stepping back from its earlier aggressive enforcement stance.
The market has remained relatively stable despite these developments. XRP, Ripple’s cryptocurrency, traded at $2.52, showing a 2% decrease in line with broader market movements. The price ranged between $2.47 and $2.62 over the past 24 hours.
The SEC’s new Crypto Task Force continues to evaluate these cases, suggesting that more changes may be coming to the agency’s approach to cryptocurrency regulation and enforcement.
Recent joint motions and delays in multiple high-profile cases indicate a broader pattern of the SEC reconsidering its strategy in the cryptocurrency space.
These developments come as the cryptocurrency industry continues to mature and adapt to regulatory oversight, with both regulators and companies showing increased willingness to find common ground.
