Ripple SEC Case: The crypto community calls for the dismissal of the long-running lawsuit and resignation of SEC Chair Gary Gensler. While former SEC lawyers have denied the odds of XRP lawsuit dismissal, Donald Trump-JD Vance administration’s policy changes and crypto regulatory clarity could help end the case.
Ripple CEO Brad Garlinghouse said he is expecting a resolution or end of the SEC lawsuit after Trump’s win. He also shared the first 100-day crypto checklist for Donald Trump, which included meeting campaign promises such as firing US SEC Chair Gary Gensler and crypto regulatory clarity.
Experts Weigh on Whether Ripple SEC Case Be Dismissed?
Ripple vs SEC lawsuit experts and lawyers have shared insights on case dismissal as President-elect Donald Trump plans major policy overhauls. The crypto industry is one of the biggest winners from Trump’s re-election to the White House as he promised crypto regulatory clarity.
David Schwartz, CTO at Ripple, blamed the U.S. Securities and Exchange Commission (SEC) for using the term “investment contract” to create chaos and confusion around securities law. He clears that the company is legally obligated to Ripple shareholders and not XRP holders. While Ripple can work around legal clarity around XRP and digital assets, the prices of digital assets don’t depend on the efforts of the company.
“The SEC has been treating all reasonable reliance as if it were a contract. They are often opposites. If you can reasonably rely on me to do something because it is in my own interests to do it, you don’t need a contract.”
Pro-XRP lawyer Bill Morgan pointed out that Judge Torres ruled programmatic sales of XRP by Ripple are not securities as it did not satisfy the third prong of the Howey test. Thus, the promotion of XRP to retail holders by Ripple will not impact XRP price.
Attorney Fred Rispoli said the Ripple SEC case can be withdrawn or settled at any time. While he believes the XRP lawsuit withdrawal is “unrealistic” though settlement seems likely.
US SEC to Target Secondary Market Sales
Former US SEC lawyer James Farrell there is absolutely zero percent chance of dismissal of Ripple, Coinbase and other litigations. He also added that if the SEC drops the XRP lawsuit appeal, it will harm the regulator to a great spectrum. The parties need to settle or confer on agreeing with $125 million in civil penalties.
The government agency will continue to target secondary market sales. The SEC has taken a new turn to file lawsuits against crypto firms for secondary sales violating US securities law.
Gary Gensler was asked to resign as the SEC Chair by American Securities Association (ASA) President Chris Iacovella. Critics say Gensler’s regulatory approach has fomented uncertainty, obstructed efficiency in the markets, and shortchanged some investor protections.
Lawyer James Murphy, better known as “MetaLawMan” revealed that historically former SEC Chair resigned from their position a week after a change in the US administration.
Time to say Goodbye Gary!
Nov. 8, 2016: Trump elected
Nov. 14, 2016: Mary Jo White (SEC Chair) announces her resignation
Nov. 3, 2020: Biden elected
Nov. 16, 2020: Jay Clayton announces resignation
Nov. 5, 2024: Trump elected
Nov. __, 2024: Hey @GaryGensler, we’re waiting
— MetaLawMan (@MetaLawMan) November 12, 2024
XRP Traders Await Price Rally to $1
XRP price is currently trading at $0.67, up over 15% in the last 24 hours. It hit a 24-hour low and high of $0.5898 and $0.7009, respectively. Moreover, trading volumes surged 166% amid the ‘Trump trade’.
As Bitcoin rally cools down on panic of crypto market crash, experts and analysts claim altcoin season amid bullish pattern breakout can trigger a rally in XRP price to $1. Open interest in XRP futures jumped 25% to $1.11 billion in the last 24 hours.
US SEC must file its opening brief regarding appeals in the SEC v Ripple Labs case by January 15, 2025, as per an order by the US Court of Appeals for the Second Circuit.
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