Former SEC official John Reed Stark believes the SEC’s lawsuit against Ripple, concerning XRP, is heading for dismissal—and on terms very favorable to Ripple.
The SEC’s Changing Tune
Stark’s prediction comes after some major shifts in how the SEC is handling crypto cases. The SEC’s cases against Coinbase and Binance have been put on hold, suggesting a reevaluation of their approach to crypto regulation. Stark sees this as a sign the SEC might drop its appeal against Ripple. He even claims the SEC’s crypto enforcement efforts are essentially over, saying winning cases isn’t a priority anymore.
The Ripple Case: A Turning Point?
The SEC has been battling Ripple since December 2020, claiming XRP is an unregistered security. But a significant court ruling last July stated that XRP sales to regular investors weren’t securities transactions, weakening the SEC’s case considerably. This, combined with the SEC’s shifting strategy, leads Stark to believe the SEC will either pause or completely withdraw its appeal.
Stark’s Predictions: What to Expect
Stark lays out three key expectations:
- Investigations Halt: The SEC will likely slow down or stop its investigations into other crypto projects.
- Favorable Resolutions: Current lawsuits, including the Ripple case, will probably be settled or dismissed, with great outcomes for the crypto companies involved.
- Appeals Withdrawn: The SEC will likely drop its appeals in crypto cases, including the Ripple case.
Stark believes that even previous rulings about digital assets being securities are now irrelevant, given the SEC’s changed approach. He essentially declares the SEC’s crypto enforcement “dead.”
At the time of this writing, XRP was trading at $2.60.
