Top Lawyers Reveal Why the US SEC Is Stalling Crypto Lawsuits Like Ripples
- The SEC and Binance agreed to pause legal proceedings for 60 days.
- Legal experts suggest the SEC is delaying cases until new leadership takes charge.
- Pro-XRP lawyers believe the Ripple lawsuit may also face a strategic delay.
The recent 60-day pause in the Binance lawsuit has triggered debates over the US SECs approach to crypto cases. Legal experts, including pro-XRP attorneys and former SEC officials, have analyzed the agencys next steps. Market participants are closely watching the Ripple vs SEC case, expecting a possible delay in legal proceedings.
XRP Lawyer Predicts Strategic SEC Delay
The SEC and Binance have jointly requested a 60-day pause in the ongoing case, raising questions about the agencys approach. Both parties cited the formation of a crypto task force under Commissioner Hester Peirce as the reason. This development has led analysts to speculate about the potential impact on other crypto-related lawsuits.
Pro-XRP attorney James Murphy suggested that the delay might be strategic, awaiting the confirmation of Paul Atkins as the new SEC Chair. He explained that Peirce and acting SEC Chair Mark Uyeda might be holding off until Atkins assumes leadership. This move could lead to the dismissal of several ongoing crypto-related lawsuits, including the Ripple case.
Legal experts are debating whether similar pauses will occur in other cases, such as the Coinbase lawsuit. Murphy stated that if the Second Circuit Court accepts Coinbases request for an interlocutory appeal, a delay might not be necessary. The SEC might prefer to wait for Atkins before making further legal decisions.
Former SEC Lawyer Explains Legal Process
Bill Morgan, a well-known XRP attorney, questioned why the SEC is not proceeding if it has enough votes to dismiss cases. Murphy responded that no real legal barrier prevents the SEC from acting now. He pointed out that the agency recently rescinded the Staff Accounting Bulletin 121 (SAB 121) without Atkins in place.
Former SEC lawyer Marc Fagel offered a counterargument, explaining that SAB 121 did not require a formal commissioner vote. However, dismissing or settling enforcement actions does require a formal vote, making leadership changes crucial. While the SEC has the authority to act now, it may choose to delay decisions until Atkins takes over.
Fagel also clarified that an acting SEC Chair has the power to vote on these matters. No rule prevents the current leadership from proceeding with legal decisions. However, the SECs choice to delay remains within its discretion.
Experts See CFTC Surpassing SEC Influence
The appointment of Brian Quintenz as the new CFTC Chair has also drawn attention from the crypto community. His leadership is expected to bring a positive shift in regulatory approaches toward digital assets. Some experts believe the CFTC may play a larger role in overseeing crypto regulations than the SEC in the long run.
XRP attorney Jeremy Hogan noted that the CFTCs influence could surpass that of the SEC in the future. He expressed optimism about Quintenzs leadership, calling his appointment a favorable move for the industry. Many in the crypto space view these leadership changes as a sign of potential regulatory relief.
Despite these developments, uncertainty remains over the SECs immediate actions on pending lawsuits. The legal community continues to debate the potential timeline for dismissals or settlements.
Read more: https://www.tronweekly.com/top-lawyers-reveal-why-the-us-sec-is-stalling/
Text source: TronWeekly
