With the SEC dropping multiple crypto lawsuits, including a case against Hex founder Richard Heart, hopes are rising that Ripple’s long-standing legal battle with the SEC could be nearing an end. Prominent XRP advocate and attorney John Deaton is now calling for an immediate dismissal of the case, citing the SEC’s recent reversal on high-profile enforcement actions.
In a direct appeal to key figures in the crypto regulatory landscape, Deaton tagged SEC Commissioner Hester Peirce, Acting SEC Chair Mark Uyeda, and industry voices David Sacks and Bo Hines in an X post, urging them to take action.
His call follows the SEC’s unexpected dismissal of lawsuits against Coinbase, Robinhood, and Uniswap, signaling a shift in how the agency approaches crypto regulation. With mounting pressure from the industry and legal experts, the Ripple vs. SEC case remains one of the last major crypto enforcement actions still standing.
SEC’s Legal Reversals Fuel Speculation
The SEC’s decision to drop several cases, including the one against Richard Heart, has raised questions about the agency’s strategy. Some view it as a sign that the regulatory body is scaling back its aggressive “regulation-by-enforcement” approach. However, former SEC official John Reed Stark sees this as a red flag, warning that it could indicate deeper issues within the agency itself, potentially leading to regulatory chaos or even the SEC’s decline.
“So This is How the SEC Dies.The Rapid-Fire Demolition of the SEC Crypto-Enforcement Program Continues. SEC Investigations of Uniswap & Opensea Officially Closed. Both Firms Had Received Wells Notices Under SEC Chair Gensler. Dropping of the SEC’s Ripple Appeal Next Up for Sure.,” he posted
Meanwhile, crypto supporters see the move as a long-overdue correction, particularly in the wake of legal losses that weakened the SEC’s stance against the industry. If Ripple manages to secure a dismissal, it could be a defining moment for crypto regulation in the U.S., setting a precedent for future cases involving digital assets.
Impact on Ripple and XRP Holders
The Ripple vs. SEC lawsuit, filed in December 2020, alleges that Ripple’s sale of XRP constituted an unregistered securities offering. The legal battle has cost Ripple over $150 million in legal fees, caused XRP to be delisted from major exchanges, and created uncertainty for tens of thousands of investors.
If the SEC backs down and dismisses the case, it would be a massive victory for Ripple and the broader crypto industry. Such a move would signal a shift away from harsh enforcement policies and could influence how other crypto assets are regulated in the future. This shift could pave the way for more constructive engagement between regulators and the cryptocurrency industry.
Quick Facts:
- The SEC has recently dismissed lawsuits against major crypto firms, including Coinbase and Robinhood, indicating a shift in regulatory approach. Ripple Labs has reportedly spent over $150 million in legal fees defending against the SEC’s allegations.
- Legal experts, including attorney John Deaton, are advocating for an end to the SEC’s lawsuit against Ripple, citing the absence of fraud allegations and the negative impact on investors.
- The outcome of the Ripple case could significantly influence future regulatory policies and the classification of digital assets.
