Crypto attorney James Murphy, MetaLawMan, has drawn attention to a notable shift in the U.S. Securities and Exchange Commission’s (SEC) approach to cryptocurrency enforcement.
His analysis of the SEC’s recent decisions, particularly in its case against Coinbase, has sparked speculation that the agency may reevaluate its legal strategy. This development has led many to question whether the SEC will take a similar approach in its ongoing lawsuit against Ripple.
SEC’s New Position in the Coinbase Case
A significant shift in the SEC’s handling of the Coinbase case has raised questions about its broader litigation strategy. Initially, SEC Chair Gary Gensler strongly opposed allowing an interlocutory appeal, which would enable a higher court to review key legal issues before the trial’s conclusion.
As Murphy pointed out on X, the agency has now decided not to challenge Coinbase’s request, signaling a possible reconsideration of its approach.
Coinbase was recently granted leave to pursue this interlocutory appeal , and the attorney noted that if the 2nd Circuit grants the appeal, the SEC will be required to clarify its stance on whether cryptocurrency assets traded on secondary markets qualify as investment contracts under securities laws.
Rather than risk an unfavorable ruling, the agency may withdraw the case before reaching that stage. This change in strategy has fueled speculation that the SEC’s evolving position in the Coinbase case could extend to the Ripple lawsuit.
If the SEC hesitates to establish a legal precedent on crypto assets through litigation, it may resolve the case through other means.
What Does This Mean For the Ripple Lawsuit?
The SEC’s lawsuit against Ripple has been a focal point in the crypto industry, with recent developments raising speculation about its outcome. The removal of certain case-related documents from the SEC’s website led some to believe that a resolution was imminent.
However, Murphy dismissed the rumors, explaining that the case remains active and that Ripple’s appeal brief is due on April 16 .
Still chugging along.
Ripple's brief is due April 16 I believe.— MetaLawMan (@MetaLawMan) February 4, 2025
When Will the Lawsuit be Dismissed?
Jeremy Hogan, another prominent attorney, has predicted that the agency may drop the case in April or May , particularly if a new SEC chair is appointed before then.
While the agency lacks a Senate-confirmed Chair, Murphy revealed that the SEC does not require a new chair to make key legal decisions. Existing Commissioners hold the authority to vote on settlements or dismissals. With Hester Peirce and Mark Uyeda in place, the Ripple lawsuit could be dismissed before the confirmation of Paul Atkins, Trump’s appointee for SEC Chair.
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