Ripple SEC Case: Will XRP Lawsuit Be Dismissed?

by

As a seasoned analyst with over two decades of experience in the financial industry, I’ve seen my fair share of legal battles and regulatory changes. The Ripple vs SEC case has been a long-standing saga that has left many in the crypto community eager for resolution.

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.

Brad Garlinghouse, CEO of Ripple, anticipates a resolution or conclusion of the SEC lawsuit following President Trump’s victory. He additionally disclosed a 100-day cryptocurrency plan for Donald Trump, which encompassed fulfilling campaign pledges such as replacing current US Securities and Exchange Commission Chair Gary Gensler and providing clearer regulations on cryptocurrencies.

Experts Weigh on Whether Ripple SEC Case Be Dismissed?

Experts and legal professionals have offered their perspectives on the potential dismissal of the Ripple vs SEC lawsuit, given that President-elect Donald Trump is planning significant policy changes upon his return to the White House. The cryptocurrency sector stands to benefit significantly from Trump’s re-election, as he has promised to bring clarity to regulatory issues surrounding digital currencies.

David Schwartz, Chief Technology Officer at Ripple, criticized the U.S. Securities and Exchange Commission (SEC) for employing the term “investment contract” to stir up uncertainty in securities law. He emphasized that the firm is bound by legal obligations towards its shareholders, not XRP holders. Although Ripple can navigate through legal certainty regarding XRP and digital assets, the values of digital assets are independent of the company’s exertions.

In essence, the Securities and Exchange Commission (SEC) considers any trust placed upon one’s actions, which is reasonable, as though it were an implied agreement. However, relying on someone due to their self-interest and entering into a formal contract are typically two separate entities. In other words, if my personal interests make it likely that I will do something without needing a written agreement, you won’t need one either.

Bill Morgan, a lawyer who supports XRP, noted that Judge Torres determined programmatic sales of XRP by Ripple do not qualify as securities under the third aspect of the Howey test. Consequently, Ripple’s marketing efforts towards retail investors should not have any direct impact on the price of XRP.

Lawyer Fred Rispoli stated that the Ripple SEC case could potentially be dropped or resolved amicably at any point. However, he finds it unlikely that the XRP lawsuit will be withdrawn entirely, but a settlement appears to be a more plausible outcome.

US SEC to Target Secondary Market Sales

Lawyer James Farrell, who previously worked for the U.S. Securities and Exchange Commission (SEC), firmly believes that there is absolutely no chance whatsoever of dismissal for lawsuits involving Ripple, Coinbase, and others. He further stated that if the SEC were to abandon its appeal in the XRP lawsuit, it could cause significant damage to their reputation across a wide range of spectrum. Farrell suggests that the parties should either negotiate a settlement or come to an agreement involving a $125 million fine in civil penalties.

As a cryptocurrency investor, I’ve come to understand that the regulatory body, the SEC, is stepping up its efforts to scrutinize and potentially sue crypto companies for any secondary market sales that are deemed to be in violation of U.S. securities laws. In simpler terms, they are cracking down on these firms for breaking the rules related to how cryptocurrencies can be traded or sold within the U.S. market.

The American Securities Association (ASA), led by its president Chris Iacovella, requested Gary Gensler’s resignation as the Chair of the SEC. Critics claim that Gensler’s regulatory strategies have fostered doubt, impeded market efficiency, and fallen short in some areas of investor protection.

As a researcher, I’ve uncovered an intriguing pattern: Historically, chairs of the Securities and Exchange Commission (SEC) have stepped down from their positions a week following a shift in U.S. administration. This trend is notably associated with the public figure known as “MetaLawMan,” who goes by the name James Murphy in his professional capacity.

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

The cost of XRP is presently around $0.67, representing an increase of more than 15% in the past day. It reached a low and high within this period of $0.5898 and $0.7009 respectively. Furthermore, trading activity spiked by about 166% due to the ‘Trump trade’.

With Bitcoin‘s rally showing signs of slowing due to fears of a broader crypto market collapse, some experts and analysts predict an “altcoin season,” which could potentially boost the price of XRP to reach $1. In the past day, the open interest in XRP futures has surged by 25%, reaching a level of $1.11 billion.

According to a court order from the U.S. Court of Appeals for the Second Circuit, the United States Securities and Exchange Commission (SEC) has until January 15, 2025, to submit its initial argument in the SEC vs Ripple Labs case regarding appeals.

Read More

2024-11-12 19:53