- SEC vs Ripple case January 15 appeal deadline nears, coinciding with Gary Gensler’s expected exit and leadership transitions.
- Pro-crypto SEC Chair Paul Atkins may reshape Ripple’s case; analysts foresee potential appeal withdrawal under Trump’s administration.
- Ripple’s $5M donation to Trump’s inauguration is seen as an effort to align with pro-crypto leadership amid ongoing legal uncertainty.
The SEC’s ongoing legal battle with Ripple is nearing its January 15 deadline in two weeks. This date is the final submission day of the SEC’s opening brief for its appeal, adding urgency to an already disputable case.
Former SEC lawyer Marc Fagel said there is potential for the appeal to be withdrawn under a new administration. He noted, “The appeal will continue for now, and that process takes about a year. But there is the possibility that a new administration decides to move to dismiss the appeal.”
Ripple Lawsuit Faces New Dynamics Amid Transition
The Ripple case coincides with leadership changes at the SEC. Current Chair Gary Gensler is expected to exit office just five days after the appeal’s filing deadline. Analysts speculate this could be Gensler’s final major move against Ripple.
Incoming SEC Chair Paul Atkins, aligned with a pro-crypto agenda under President-elect Donald Trump, is anticipated to take a different approach. Analysts and executives express optimism about a potential dismissal or withdrawal of the appeal.
Many attribute this to the SEC’s criticized enforcement strategy under Gensler, which targeted crypto companies aggressively. With a new administration, there is hope for a change in regulatory stance, possibly leading to the approval of an XRP-based ETF.
Ripple Prepares for Legal Developments
Ripple continues its legal defense, with upcoming court deadlines. In April, Ripple and its CEO, Brad Garlinghouse, will respond to the SEC’s appeal. Meanwhile, Ripple has aligned itself with the incoming administration by donating $5 million in XRP to President-elect Trump’s inauguration.
This is seen as Ripple’s efforts to create good relations amid regulatory scrutiny. Ripple’s Chief Legal Officer Stuart Alderoty emphasized the need for reforms in the SEC’s approach. Further, recalling the case on its fourth anniversary, he stated,
“We urge the incoming administration to cleanse the lingering stain of Hinman from the agency.” This statement reflects Ripple’s broader call for restoring trust in the regulatory process.
Uncertainty Arround SEC’s Appeal Decision
While incoming leadership may influence the SEC’s stance, the decision to continue or withdraw the appeal rests on internal votes. SEC rules require a collective agency vote rather than unilateral action by the Chair.
With pro-crypto sentiments high, experts like John Deaton foresee a high likelihood of the case’s dismissal. Uncertainty about the SEC’s decision remains, adding pressure to XRP’s price movements. This legal uncertainty has kept stakeholders and the broader crypto community on edge.