Recent insights from former SEC official John Reed Stark suggest that the regulatory body’s lawsuit against Coinbase may face significant challenges. Stark elaborated on February 17 via social media, indicating that the SEC’s request for a 28-day extension reflects ongoing deliberations within its newly formed cryptocurrency working group. This internal review could potentially reshape the SEC’s approach to past enforcement actions involving Coinbase. He emphasized that the SEC’s report, characterized as an “unprecedented” joint motion, signals an active evaluation process that might ultimately nullify the lawsuit.
Moreover, Stark anticipates a similar fate for the SEC’s case against Binance. He referenced a joint motion from February 11 where both entities acknowledged that the regulatory review could lead to a favorable resolution of their ongoing disputes. In parallel, Stark noted the prolonged legal battle involving Ripple, which began in 2020. He posited that all cryptocurrency-related appeals, including Ripple’s, might experience delays or even seek full withdrawal, showcasing a shift in the SEC’s enforcement strategy.