Former SEC official John Reed Stark predicts the pending U.S. Securities and Exchange Commission lawsuit against Coinbase is closing after the Crypto Task Force’s launch because of it. Through his Feb. 17 X post, Stark hints at changing SEC strategies after seeing their 28-day extension request to answer Coinbase’s appeal petition.
According to Stark the SEC needs time to conduct a thorough evaluation of cryptocurrency matters through its ongoing examination process. According to the author, the SEC no longer stands a chance to pursue Coinbase in this matter.
SEC Sues Coinbase First
In June 2023 the SEC first sued Coinbase for running an unregistered exchange and brokerage business. Coinbase defended its crypto transactions by saying these exchanges should not be viewed as securities. Based on the February 11 joint motion signed by both parties Stark believes the legal fight against Binance will draw similar conclusions.
Since 2020 the Securities and Exchange Commission (SEC) has engaged in legal proceedings against Ripple that parallel their ongoing dispute.
“Expect all crypto-related appeals, including the appeal of the Ripple matter, to pause or even more likely, to be fully withdrawn.”
Over 18 years as SEC Office of Internet Enforcement Head and teacher at Georgetown University, Stark now runs his professional consulting business. After President Donald Trump assumed office on his first day the SEC established the Crypto Task Force under Commissioner Hester Peirce who works to fix previous crypto regulations.
The regulatory body gathered companies from both blockchain and finance sectors for discussions on exchange-traded products, brokerage requirements, and blockchain protocols. Through its advocacy the Blockchain Association wants regulators to change their previous SEC rulings by telling them law interpretation needs to be corrected.
Top recent meeting participants included employees from Nasdaq along with officials from Andreessen Horowitz, Multicoin Capital, Jito Labs, and legal experts at Sullivan & Cromwell. The Securities and Exchange Commission regulatory perspective about cryptocurrency seems to waver now as it decides the results of major probes focused on Coinbase, Binance, and Ripple.
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