SEC v Ripple: The recent win of Donald Trump in the 2024 US presidential election has brought back hope to the cryptocurrency enthusiasts especially on the matter of the ongoing SEC v Ripple lawsuit.
Legal experts and Ripple supporters are speculating that the Donald Trump administration could bring positive changes to the crypto space which could help the company to reach a settlement faster in the ongoing Ripple case.
Potential Settlement Scenarios for SEC v Ripple Case
Fred Rispoli, a lawyer who has been monitoring the SEC v Ripple case has suggested that there are two likely outcomes for the case. According to Rispoli, shifts at the Securities and Exchange Commission that could occur as soon as March 2025 may influence the outcome of the Ripple trial. The first scenario will be the current US SEC leadership, under the chairmanship of Gary Gensler, deciding to act before a new leadership takes over.
According to Rispoli, Gensler’s team may wish to settle the case but keep penalties such as the $125 million fine in place as a means of exercising control over the market.
The second scenario that Rispoli sees is more beneficial for Ripple. The new leadership at the Securities and Exchange Commission may cause the agency to reconsider the case and less the penalties on Ripple or even dismiss some of the charges. According to Rispoli, the current administration of Trump may view the lawsuit as an adverse event for the US crypto industry and may want to settle the case in a way that would be beneficial to Ripple, such as excluding the current sales of XRP from being deemed securities.
Ripple CEO Garlinghouse Responds to Trump Win
Ripple CEO Brad Garlinghouse has spoken about the influence that Trump’s victory may have on the regulation of the cryptocurrency industry after “a frustrating journey”. In a statement, Garlinghouse remained hopeful, suggesting that the years of what he has called the SEC’s “interference” in the digital currency sector, could be giving way to a change in regulatory policy that is potentially more favorable.
Brad Garlinghouse, though not directly speaking about the possibility of the lawsuit being settled, pointed out the endurance of the XRP community and noted that “the tide is turning” in their favor.
I’ve shared some thoughts on what the Trump administration could mean for crypto and wanted to also recognize the XRP family’s patience and unwavering support.
A lot has happened since XRP was the 2nd most valuable digital asset. It’s been – at times – a frustrating journey.
~6…
— Brad Garlinghouse (@bgarlinghouse) November 7, 2024
Garlinghouse’s comments come in the wake of recent court rulings ordering the SEC to file its opening brief for its appeal in the Ripple case on or before January 15, 2025. If the SEC does not meet this deadline, the appeals could be thrown out, which might limit the Securities and Exchange Commission’s actions as new management comes in.
Donald Trump Administration’s Approach to the SEC
The Trump transition team is reportedly considering candidates for the Securities and Exchange Commission chair role, with names such as Dan Gallagher and Paul Atkins, both former SEC commissioners, being mentioned.
Gallagher, currently Robinhood’s Chief Legal Officer, is viewed favorably by many in the crypto community.
According to Reuters, Trump’s team has also indicated intentions to reverse what they see as regulatory overreach by Gary Gensler’s Securities and Exchange Commission, which has aggressively pursued enforcement actions against crypto companies.
XRP Price To $1 After SEC v Ripple End?
The market has responded positively to Trump’s election and the prospect of a resolution in the Ripple case. XRP, Ripple’s digital asset, recently saw a price surge, reaching its highest level since October. With XRP price currently trading above $0.55, some analysts believe the asset could continue its upward trend, potentially nearing the $1 mark if a settlement appears imminent.
Concurrently, Donald Trump’s administration has already sparked discussion about potential crypto-friendly policies, including the approval of an XRP ETF.
Although the US SEC has previously resisted crypto ETFs, a Republican-led Securities and Exchange Commission could be more open to approving new financial products tied to digital assets, especially those like XRP and Solana following Bitcoin and Ethereum ETF’s earlier approval.
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