The SEC might stop its lawsuit against Ripple, following delays in similar lawsuits against Coinbase and Binance, amid the prospect of a settlement.
The SEC is possibly taking the break on the lawsuit against Ripple after it’s caused a delay with lawsuits against Coinbase and Binance.Former SEC member John Reed Stark opines the move is possible by referring to the recent example in which the SEC suspended court hearings from Coinbase and Binance when the Crypto Task Force intervened.
In the Binance instance, the SEC sought a two-month stay, and it seems the agency is making its transition with the new enforcement unit renaming. That shift in approach might encourage the SEC to settle, and Ripple might be up next.
Legal expert Jeremy Hogan speculates the SEC and Ripple may settle on a deal anytime, especially as the XRP ETF approval accelerates. Since there are three ETF applications underway, the regulators finally are sitting up and taking notice, so it is increasingly likely.
Even though the court ruled that XRP is not a security for certain transactions in 2023, the SEC has kept fighting the case. With some SEC lawyers reassigned and a focus on reducing crypto enforcement, a pause or settlement could be on the horizon, just like with Coinbase and Binance.
