SEC May Drop Crypto Lawsuits, Says Former Agency Lawyer

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SEC May Drop Crypto Lawsuits, Says Former Agency Lawyer John Reed Stark

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 20, 2025

Key Takeaways

Former SEC attorney John Reed Stark predicts the agency will pause or settle all crypto-related cases, including Ripple’s;
Judges have delayed key SEC lawsuits, including those involving Coinbase and Binance;
The SEC has reassigned key staff, suggesting cryptocurrency investigations may no longer be a priority for the agency.

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SEC May Drop Crypto Lawsuits, Says Former Agency Lawyer John Reed Stark

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The US Securities and Exchange Commission (SEC) may soon pull back from its legal battles with crypto firms, according to John Reed Stark, a former SEC attorney.

Stark, who previously led the SEC’s Office of Internet Enforcement, believes all ongoing investigations—both formal and informal—are likely to stall, including the agency’s long-running case against Ripple XRP $2.22 .

The former attorney stated in a February 18 post on X that he expects the SEC to instruct its trial unit to either pause all crypto-related cases or settle them on terms favorable to the companies involved.

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Recent court decisions align with this possibility. In January, a judge ruled that the SEC’s lawsuit against Coinbase $1.22B must be paused until an appeals court weighs in.

Meanwhile, in February, a judge approved a request from the SEC and Binance $6.32B to delay proceedings for 60 days.

He also expects the legal battle over Ripple to be delayed or withdrawn entirely, though he did not specify a timeline beyond saying it could happen “soon”.

Another sign of shifting priorities at the SEC is the reassignment of Jorge Tenreiro, a lawyer in major crypto cases, to the agency’s information technology division. Along with this, the SEC has reassigned more than 50 lawyers and staff members.

The SEC recently reviewed how cryptocurrency projects were handled in the past. What is the aim of this action? Read the full story.