The U.S. Securities and Exchange Commission (SEC) seems to be waving the white flag in its war against cryptocurrency. According to John Reed Stark, a former SEC official, the agency’s crypto enforcement efforts are collapsing, with Ripple’s longstanding legal battle nearing a decisive victory.
On February 17, Stark took to X (formerly Twitter) to deliver a bold prediction: the SEC will likely drop its Ripple appeal and abandon all crypto-related cases. Stark, who served as the SEC’s chief of Internet Enforcement for over two decades, didn’t mince words: “The writing is now on the wall. SEC crypto-enforcement has officially expired.”
Signs of Retreat
Stark pointed to several key developments as evidence of the SEC’s retreat. Recent legal filings in cases against Coinbase and Binance suggest a significant shift in strategy. Last week, the SEC and Binance requested a two-month pause in their ongoing litigation, citing potential regulatory changes. Similarly, the SEC delayed its response to Coinbase’s appellate petition, hinting at a possible resolution.
“Translation: Stick a fork in the SEC’s case against Coinbase—it’s done,” Stark wrote bluntly.
Additionally, internal changes within the SEC signal trouble for its crypto crackdown. Stark revealed that a prominent trial attorney, once instrumental in the agency’s crypto victories, has been reassigned to a less critical role. “One day he was leading the charge, and the next day he was fixing printers,” Stark quipped, underscoring the agency’s struggles.
Ripple’s Moment of Triumph
Ripple’s legal battle with the SEC, which began in 2020, may soon end in a watershed moment for the cryptocurrency industry. Stark predicts the SEC will likely withdraw its appeal entirely, marking the end of its campaign against Ripple.
He went further, suggesting the SEC will halt all crypto-related investigations and litigation. “Expect the SEC to settle or dismiss all crypto-related cases expeditiously and on highly favorable terms for defendants,” Stark stated.
The End of an Era
In his final remarks, Stark delivered a sobering conclusion: the SEC’s crypto enforcement is over. Despite past victories labeling digital assets as securities, the agency seems incapable of continuing the fight. “The SEC crypto-enforcement is as dead as Julius Caesar. RIP,” he wrote.
For Ripple and the broader cryptocurrency space, this could signal a new chapter of regulatory freedom. For the SEC, it’s a striking reminder that the battle for crypto oversight may now lie in the hands of lawmakers, not enforcers.
