The lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC) may be poised for a significant turning point under the agency’s new leadership. With Donald Trump once again occupying the White House, Paul Atkins has been nominated as the new SEC Chairman, succeeding Gary Gensler. Industry observers and legal experts are closely watching for signals on whether the acting chair Mark Uyeda and commissioners, including Hester Peirce, plan to modify the SEC’s enforcement stance on cryptocurrencies.
Ripple Vs. SEC: What Will Happen Next?
A recent development in the Binance vs. SEC lawsuit provides a possible glimpse into how the Commission might handle the Ripple litigation going forward. On Monday, Binance and the SEC filed a joint motion in the US District Court for the District of Columbia seeking a 60-day stay—an action that, if granted, would temporarily halt proceedings the agency initiated two years ago under then-Chairman Gensler.
According to the joint filing, “The Commission approached counsel for Binance to request a stay, citing the establishment of its new Crypto Task Force as a reason to allow time for potential resolution discussions.” The filing marks the first major crypto enforcement pause since Mark Uyeda assumed the role of acting chair while the Senate finalizes the confirmation of Paul Atkins.
Crypto lawyer James “MetaLawMan” Murphy, who serves as a financial services lawyer at Ludlow Street Advisors, LLC, sees the proposed 60-day stay as an indication of how the SEC might proceed with other high-profile crypto cases—potentially including the closely watched lawsuit against Ripple Labs. In a statement via X, Murphy remarked: “The 60 day stay of the binance case might indicate that Hester Peirce & Mark Uyeda want to wait until Paul Atkins is confirmed as Chairman of the SEC before they dismiss crypto cases.”
Murphy’s comment came in response to an observation from XRP community member Ashley PROSPER (@AshleyPROSPER1), who had stated: “XRP Community: The SEC and Binance have filed a joint motion for a stay in the case, citing the new Crypto Task Force as a potential avenue for resolution. With that great news, I expect the Ripple case should be concluded soon.”
Murphy also noted that the SEC has recently sought more time in other crypto-related cases. Earlier today, the Commission was granted a 30-day extension to respond to DRW’s motion to dismiss a case related to the firm’s crypto trading activities.
“More delays incoming in SEC crypto cases,” Murphy posted. “Earlier today, the SEC was granted a 30 day delay of its deadline to respond to DRW’s motion to dismiss the case. The SEC cited the creation of the Crypto Task Force as a rationale for the delay—just like in Binance.”
In mid-October 2024, the SEC filed a lawsuit against Cumberland DRW, a crypto asset market maker that traded for its own account as principal. The agency alleges that DRW’s crypto-related trading should have been conducted under a securities dealer registration. DRW moved to dismiss the case, and the SEC’s request to extend its response deadline suggests enforcement actions involving non-fraud crypto lawsuits could face slowdowns or strategic holds while the new Crypto Task Force’s mandate is clarified.
Eleanor Terrett, a Fox Business journalist covering crypto regulatory affairs, also commented on the Binance filing: “Here’s the first requested pause on crypto litigation in the courts since Mark Uyeda took over as acting chair. […] I expect we’ll see other non-fraud cases (i.e. Ripple, Coinbase, Kraken and others) follow suit in this manner.”
Terrett’s remarks echo the views of many within the crypto sphere, who see the creation of a new Crypto Task Force as a turning point in how the SEC enforces regulations against digital assets.
As of this writing, there is no official confirmation on whether the Ripple case will mirror the Binance pause or be otherwise affected by the same Task Force considerations. Still, the request for additional time in multiple enforcement actions has renewed optimism among XRP holders and some legal experts that a comprehensive resolution may be on the horizon.
At press time, XRP traded at $2.40.
