Could the Ripple Lawsuit Be Dropped? SEC Commissioner Says ‘Difficult Days’ Ahead

With Paul Atkins now taking over as SEC Chair, speculation is swirling about a potential shift in how the SEC handles crypto. There’s growing hope that with a more pro-crypto Congress and President, the SEC might ease up on non-fraud cases, potentially dropping some ongoing lawsuits or speeding up settlements for smaller cases.

Hester Peirce Criticizes Enforcement-Driven Policy in Crypto

SEC Commissioner Hester Peirce has voiced concern about using enforcement as the primary way to set crypto policy. In an interview with Thinking Crypto, she said that trying to establish rules through enforcement actions often leads to confusion, with companies assuming that settlements set the standard for everyone, even when those settlements don’t create clear, official rules. Instead, Peirce stressed that policy should be shaped through proper legislative processes, like notice and comment rulemaking, rather than through enforcement actions.

Looking forward, Peirce believes there will be some tough decisions as the SEC adjusts its approach to crypto.

I don’t want to let our enforcement program drive policy any more now than it was doing before and has been doing so far. So I think there’s some difficult days ahead for all of us as we think through how to move forward,

she said. (sic)

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Ripple Case and the SEC’s Path Toward Clarity in Crypto Oversight

This statement comes after the SEC’s recent filing of its opening brief in the ongoing Ripple case, where it seeks to overturn a previous court ruling that XRP is not a security when sold to retail investors. Peirce also said that Atkins’ experience with the crypto industry may allow him to lead the SEC in a more balanced direction. He’s seen how the agency’s handling of crypto has faltered in the past and is ready to take practical steps to improve things. 

While some aspects of crypto may fall outside the SEC’s purview, Atkins is expected to help clarify what the SEC can and cannot regulate, bringing much-needed transparency to the space. He’s also likely to play a role in integrating crypto technology into the broader financial market landscape.