The US SEC looks like it’s backing off a bit from its Coinbase case, according to this ex-SEC guy, John Reed Stark. He thinks the new Crypto Task Force at the SEC is kinda rethinking some of the enforcement moves they made against crypto companies before.
Source: John Reed Stark
Why the SEC Delayed Its Response
On Feb. 17, Stark posted on social media that the SEC wanted an extra 28 days to get back to Coinbase about their appeal request. He said that the SEC is still checking out crypto stuff and just needs a bit more time.
Thus, Stark testified, “Stick a fork in the SEC’s case against Coinbase, it’s done.”
The SEC then charged Coinbase in June 2023 with operating an unregistered exchange and a broker. Coinbase had claimed that trading in cryptocurrencies is not a security.
Coinbase Appears to Be off the Hook As the SEC Pulls Its Case – Digital Transactions Click to read: https://t.co/6naKHXywX1 #Coinbase #SEC #GaryGensler #TrumpAdministration #SecuritiesandExchangeCommission #PaulGrewal @CoinbaseAssets pic.twitter.com/QfeNSTftRv
— Digital Transactions (@DTPaymentNews) February 24, 2025
Stark believes the same might happen with Binance’s case against the SEC. He referenced a legal submission on Feb. 11 where both parties seemed to be hinting that the just-established Crypto Task Force might end up being the one to sort things out after all. He’s also hoping especially that the case against Ripple, which the SEC filed in 2020, is postponed or even dismissed.
New Crypto Task Force Can Redo SEC Rules
Thus, the SEC’s Crypto Task Force began on Trump’s second day of presidency. Hester Peirce, the crypto enthusiast, is heading it, and she’s promised to correct the mistakes the previous SEC team made.
The task force is already acting. It has recently met with crypto and traditional finance industry leaders to discuss more transparent regulation for activities like crypto trading and staking. Groups like the Blockchain Association are important regulators to reverse the legal errors they’ve committed against crypto companies.
So, the task force met with people from the Blockchain Association and conducted some interviews with individuals from Nasdaq, Andreessen Horowitz, Multicoin Capital, Jito Labs, and Sullivan & Cromwell.
Well, it seems like the SEC is taking crypto regulation in a completely new direction, which might as well put an end to all those courtroom fights with Coinbase, Binance, and Ripple, among others.
