The U.S. Securities and Exchange Commission (SEC) is facing changes in how it enforces cryptocurrency regulations. Both Coinbase and Binance have had their legal battles with the SEC temporarily paused. Ripple may be the next to follow, leading many to question if the SEC’s enforcement program for cryptocurrencies is coming to an end.
According to former SEC chief John Reed Stark, the SEC’s crypto-enforcement program is falling apart. The SEC’s “Crypto Assets and Cyber Unit” has been secretly rebranded as the “Cyber and Emerging Technologies Unit.” Despite previous court rulings that digital assets are considered securities, these decisions currently don’t hold much weight. The crypto-enforcement program is effectively over, whether the SEC calls it a “pause” for cases like Binance, Coinbase, or soon Ripple.
In Coinbase’s ongoing legal battle with the SEC, there has been a major development. A U.S. court granted a pause in the proceedings, allowing Coinbase to file an interlocutory appeal. This appeal seeks clarity on whether existing securities laws apply to digital assets traded on the platform. The SEC was initially expected to respond by February 14, 2025, but they requested an additional 28 days to review the matter.
Similarly, the SEC and Binance have filed a joint request to pause their ongoing legal case for two months. This pause is to give the SEC time to reassess its approach to regulating digital assets. The creation of the SEC’s Crypto Task Force is expected to lead to a new regulatory framework, which could impact the outcome of the Binance case.
With the focus shifting to Ripple, many wonder how its legal battle with the SEC will unfold. It is believed by some, including industry expert John Reed Stark, that the SEC will soon request a pause in the Ripple case as well.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
