The U.S. Securities and Exchange Commission (SEC) has taken a surprising turn in its crypto enforcement strategy, dropping its lawsuit against Coinbase and pausing its case against Binance. The move suggests a shift in the agency’s regulatory approach, fueling optimism in the market. Coinbase confirmed the dismissal, while the SEC also abandoned its legal pursuit of OpenSea, a major NFT marketplace.
However, the agency has not backed down entirely. Ongoing cases against Kraken, Uniswap, and Robinhood remain active, with Wells notices already issued. Market analysts believe that any resolution in these cases will reduce uncertainty, stabilizing the crypto market and potentially driving prices higher.
Ripple Case: SEC’s Next Move?
The industry is closely watching the ongoing SEC v. Ripple case, which could set a precedent for crypto regulations. Speculation is growing that the SEC may pause certain aspects of the case rather than proceed with appeals, signaling a potential resolution. Attorney Jeremy Hogan suggests that the agency’s decision to refrain from further appeals would be a positive step, even if a final settlement takes time.
Meanwhile, reports indicate that the SEC has been scaling back its crypto enforcement efforts, including reassigning staff from its specialized unit. This development suggests the regulator is adopting a more measured approach, potentially paving the way for friendlier policies in the future.
Will the SEC Settle with Ripple?
Former SEC attorney Marc Fagel argues that dropping the SEC’s own appeal while Ripple has cross-appealed could amount to legal malpractice. He also noted that failing to collect the $125 million penalty imposed by the court would be highly unusual. Fagel believes that a settlement based on the summary judgment terms is the most probable outcome.
No, it could happen any time.
— Marc Fagel (@Marc_Fagel) February 22, 2025
While uncertainty remains, the SEC’s latest actions indicate a shifting regulatory landscape. If the agency continues easing its aggressive stance, the crypto market could see renewed confidence, leading to increased institutional adoption and price appreciation. Investors now await further developments, with hopes that a resolution in the Ripple case will bring long-awaited clarity to the industry.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: XRP Lawsuit: Settlement Likely by May 2025, Says Legal Expert
About The Author
