The ongoing legal battle between Ripple (XRP) and the SEC has captured the attention of the cryptocurrency world, particularly with recent predictions suggesting an imminent resolution. The case, which started in December 2020, centers around allegations that Ripple offered XRP as an unregistered security. Despite a court ruling that deemed XRP’s secondary sales as non-securities, the same judicial body found that institutional sales of XRP did indeed constitute investment contracts, resulting in Ripple being fined $125 million.
Both Ripple and the SEC have appealed parts of this ruling, each contesting the elements not in their favor. However, the tide of optimism within the XRP community has risen with the prospect of a change in administration. Donald Trump, known for his pro-crypto stance, is set to take office on January 20, 2025, coinciding with the departure of the current SEC chairman, Gary Gensler. This shift has led to speculation about a more crypto-friendly regulatory environment.
Industry figures have begun voicing their expectations for the case’s end. Notably, Chris Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC), suggested during an interview on Fox Business that the SEC might abandon the lawsuit under the new administration. Giancarlo, who previously argued that XRP should not be classified as a security, emphasized that regulatory agencies should reconsider cases where they’ve faced setbacks in court, to alleviate pressure on the crypto industry. He confidently predicted that the SEC would drop the case against Ripple.
Video source: @AbsGMCrypto
BREAKING: 🇺🇸 LEADING CANDIDATE FOR WHITE HOUSE “CRYPTO CZAR” STATES RIPPLE $XRP CASE WILL BE DISMISSED!
“If you’re a betting man would they drop the XRP case?” – @CGasparino
“I would bet they would.” – @giancarloMKTS
Do you believe the SEC leadership under President Trump… pic.twitter.com/6YRNJ1hwdh
— Good Morning Crypto (@AbsGMCrypto) November 26, 2024
This sentiment is not universally held, though. Jeremy Hogan, another voice in the legal analysis of this case, suggested that the SEC might opt to dismiss non-fraud-related lawsuits, potentially leading to Ripple settling by paying the $125 million penalty. On the other hand, prominent attorney Fred Rispoli, a supporter of XRP in its legal battles against the SEC, has argued against the likelihood of the case being dropped, emphasizing the SEC’s significant win with the civil penalty. However, he suggested that new SEC leadership might view continuing the case as unfeasible, potentially paving the way for a settlement.
The discussion around the Ripple vs. SEC case reflects a broader debate on cryptocurrency regulation, with the outcome of this legal battle potentially setting precedents for how digital assets are treated under U.S. law. As the community waits, the implications of these developments could be far-reaching, not just for XRP but for the entire crypto market, especially with the possibility of a more favorable regulatory stance on the horizon.
Price Action: As of press time, XRP is changing hands at $1.43, up more than 6% intraday. The $81B market cap cryptocurrency has surged over 190% in the past 30 days, climbing from around $0.50, where it had hovered for much of the last two years.
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