SEC’s Shift in Cryptocurrency Regulatory Approach

The SEC recently made significant moves by dropping its case against Coinbase and halting the case against Binance, indicating a shift in the agency’s regulatory approach. Coinbase confirmed the dismissal of the case, and the SEC also decided to drop its case against the OpenSea NFT platform. However, the agency still has ongoing cases against Kraken Exchange, Uniswap, and Robinhood, with Wells notices already issued. The market is anticipating positive updates from the SEC, as any resolution would remove uncertainty and help stabilize the crypto market.

Ripple Case and SEC’s Future Plans

While the market eagerly awaits the conclusion of the Ripple case, it is expected to take more time, with speculation that the SEC may pause certain aspects of the case before taking further action. The SEC has also been scaling back its crypto enforcement efforts, including reassigning staff from its special enforcement unit. These changes signal a more balanced approach to regulation and could indicate a brighter future for crypto markets.

Despite the ongoing cases, things appear to be heading in the right direction, and many believe that dropping these cases will ultimately benefit the overall market. Once the uncertainty surrounding the classification of securities is addressed, prices are likely to rise as the market gains clarity.

Attorney Jeremy Hogan suggests that the SEC might pause certain parts of the Ripple case, like not filing any appeals, which would be a positive sign that they’re working toward wrapping it up, although it might take some time. This week could yield positive news, even if it’s just a signal that the SEC is planning to conclude its actions regarding Ripple.

Former SEC lawyer Marc Fagel stated that if the SEC drops its own appeal while Ripple has cross-appealed, it would constitute legal malpractice. He also pointed out that failing to collect a $125 million penalty, which a federal court ruled was owed for breaking the law, would be similarly negligent. Fagel believes a settlement, possibly adjusting to summary judgment terms, is the most likely outcome. When asked if this could extend past August 7, 2025, Fagel responded that it could happen at any time.