Former SEC official: SEC may end lawsuits against crypto companies such as Coinbase, Binance, and Ripple

ChainCatcher news, former SEC official John Reed Stark believes that the SEC's lawsuit against Coinbase may be stillborn, as the newly established cryptocurrency working group of the regulator is seeking to resolve the previous enforcement actions against the exchange.

In a post on X on February 17, Stark explained why the SEC requested a 28-day extension to respond to Coinbase's petition for permission to appeal. He stated, "According to an unprecedented joint motion spanning 3 pages, the SEC's review of cryptocurrency-related issues is 'ongoing,' and the extension will allow the SEC time for 'appropriate review' as it prepares its response to Coinbase's petition. In other words, the SEC's lawsuit against Coinbase may already be over."

Stark estimated that the SEC's lawsuit against Binance will also meet the same fate. He cited a joint motion submitted on February 11, where both parties believe that the SEC's special cryptocurrency working group "may influence and facilitate a potential resolution of this case." The same goes for Ripple, which has been embroiled in a lawsuit with the SEC since 2020, "It is expected that all cryptocurrency-related appeals, including the appeal in the Ripple case, will be paused, and it is even more likely to be completely withdrawn."