Just In: Elon Musk’s DOGE Launches Probe into US SEC, Ripple Lawsuit To End?

A newly created account, DOGE_SEC, has announced an initiative to investigate the U.S. Securities and Exchange Commission (SEC). The account seeks public assistance in identifying and addressing potential waste, fraud, and abuse within the regulatory agency. This development comes amid ongoing legal battles involving the SEC, including its case against Ripple.

DOGE_SEC Launches Investigation into US SEC

The DOGE_SEC account has gained attention for its call to action, encouraging individuals in an X post to share insights regarding SEC-related misconduct. Coinbase’s Chief Legal Officer, Paul Grewal, responded to the initiative, suggesting that defendants who successfully challenge SEC lawsuits should be reimbursed for their legal fees.

Others in the crypto community have pointed to specific concerns, including the SEC’s withholding of 201 responsive documents related to communications with JP Morgan about Ripple and XRP. Ripple’s Chief Legal Officer, Stuart Alderoty, indicated that he has evidence related to these documents, stating, “I have the receipts.”

Additionally, former SEC Chairman Gary Gensler has been accused of political favoritism in hiring decisions. Some users, including @Vet_X0, have urged the probe to investigate the ETH Gate controversy and the SEC’s handling of the Ripple case.

Ripple vs. SEC Case Nears Resolution

The SEC’s lawsuit against Ripple has entered a critical phase, with growing speculation about a possible withdrawal of the SEC’s appeal especially with the agency under DOGE_SEC probe. Since filing the appeal-related opening brief on January 15, internal shifts within the SEC have fueled expectations of a different approach toward digital asset regulation.

With Mark Uyeda now serving as Acting Chair, Commissioner Hester Peirce has been appointed to lead the Crypto Task Force, which is expected to play a role in resolving non-fraud-related crypto cases. Recent court filings in SEC cases against Binance, Coinbase, and Lejilex have requested extensions, possibly due to the Crypto Task Force’s involvement.

Legal experts believe that once Paul Atkins is confirmed as the new SEC Chair, the agency may move away from its aggressive enforcement actions against cryptocurrencies. John Reed Stark, former Chief of the SEC’s Office of Internet Enforcement, commented, “He would likely reverse course on the SEC’s crypto-enforcement efforts.”

US SEC’s Approach to Crypto Regulation

In a statement from November last year, now-Acting Chair Mark Uyeda expressed concerns over the SEC’s enforcement approach toward digital assets. He stated,

“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm.”

This statement, combined with the SEC’s internal changes, suggests that the regulatory agency may reconsider its approach toward the Ripple lawsuit. Some believe that the absence of fraud allegations in the case strengthens Ripple’s position, increasing the likelihood of an appeal withdrawal ahead of the SEC closed door meeting.

If the SEC withdraws its appeal, it could mark a major shift in the agency’s stance on cryptocurrency enforcement. With the Crypto Task Force taking a leading role, the regulatory landscape for digital assets may see significant changes in the coming months.