SEC v Ripple: Lawyer Predicts Two Paths To Settlement After Donald Trump Win

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As a seasoned researcher who has been closely monitoring the crypto space for over a decade, I must admit that the recent win of Donald Trump in the 2024 US presidential election has brought a renewed sense of optimism to the cryptocurrency enthusiasts, particularly regarding the ongoing SEC v Ripple lawsuit. The potential outcomes suggested by lawyer Fred Rispoli and the responses from Ripple CEO Brad Garlinghouse have indeed piqued my interest.

In simpler terms, the prospect of a Donald Trump victory in the 2024 U.S. presidency has rekindled optimism among cryptocurrency supporters regarding the outcome of the SEC versus Ripple legal case.

There’s some discussion among legal analysts and Ripple enthusiasts that the Trump administration might introduce favorable policies for cryptocurrencies, potentially expediting the resolution of the ongoing Ripple lawsuit.

Potential Settlement Scenarios for SEC v Ripple Case

Lawyer Fred Rispoli, who’s been following the SEC vs Ripple case, proposes two potential outcomes. He believes that changes within the Securities and Exchange Commission as early as March 2025 might impact the Ripple trial verdict. The first possibility is that the current US SEC leadership, led by Gary Gensler, could make a decision prior to a new administration taking office.

As a researcher delving into this topic, I’ve come across an interesting perspective by Rispoli suggesting that Gensler’s team might prefer to resolve the case while maintaining the hefty penalty of around $125 million. This strategy is allegedly aimed at exerting influence over the market, ensuring compliance, and establishing a strong regulatory stance.

In Rispoli’s perspective, the second situation presents advantages for Ripple. The fresh management at the Securities and Exchange Commission might prompt them to re-evaluate the case, potentially reducing or dropping some charges against Ripple. Moreover, Rispoli suggests that the Trump administration could perceive the lawsuit as detrimental to the U.S. cryptocurrency industry and may strive for a resolution favorable to Ripple, such as excluding current XRP sales from being classified as securities.

Ripple CEO Garlinghouse Responds to Trump Win

Brad Garlinghouse, CEO of Ripple, has discussed how Donald Trump’s presidency might impact the regulation of the cryptocurrency industry following a challenging period he referred to as a “frustrating journey”. In his remarks, Garlinghouse expressed optimism, implying that the long-standing interference of the SEC (Securities and Exchange Commission) in the digital currency market could be replaced by a more favorable regulatory policy shift.

Brad Garlinghouse hinted at the potential resolution of the lawsuit without explicitly stating so, yet emphasized the resilience of the XRP community, suggesting a shift in their favor, as he put it, “the momentum seems to be on their side.

I’ve expressed some ideas regarding how the Trump administration might impact cryptocurrency, and I’d like to acknowledge the resilience and steadfast backing of the XRP community during this period. Since XRP held the position as the second-most valuable digital asset, there have been many ups and downs, and at times, it has felt challenging.

~6…

— Brad Garlinghouse (@bgarlinghouse) November 7, 2024

In response to recent court orders, Garlinghouse’s remarks follow. These orders require the SEC to submit their opening brief for the Ripple case appeal by January 15, 2025. If the SEC fails to meet this deadline, the appeals could potentially be dismissed, which may restrict the actions of the Securities and Exchange Commission as a new leadership takes over.

Donald Trump Administration’s Approach to the SEC

According to reports, the team responsible for transitioning the administration (Trump’s team) is looking at potential nominees for the position of Chair of the Securities and Exchange Commission. Two individuals who have been suggested are Dan Gallagher and Paul Atkins, both having served as commissioners in the SEC previously.

Many people within the cryptocurrency community hold Gallagher, who currently serves as Robinhood’s Chief Legal Officer, in a positive light.

As an analyst, I’ve noticed that the administration of former President Trump had signaled their intention to counteract what they perceive as excessive regulation by the Securities and Exchange Commission (SEC), led by Gary Gensler. This SEC has been actively enforcing actions against cryptocurrency companies, which they deem overly aggressive.

XRP Price To $1 After SEC v Ripple End?

There’s been a favorable reaction in the market following Trump’s election and the possibility of a resolution in the Ripple case. As a result, XRP, which is Ripple’s digital currency, has experienced a price increase, reaching its highest point since October. At present, the XRP price hovers above $0.55, leading some experts to speculate that it might continue climbing, possibly approaching the $1 threshold if a settlement seems imminent.

At the same time, discussions have been initiated under the Trump administration regarding possible cryptocurrency-friendly policies, such as approving an Exchange Traded Fund (ETF) based on Ripple (XRP).

While the U.S. Securities and Exchange Commission has historically been hesitant about crypto-based ETFs, a Republican-led SEC might be more receptive to endorsing novel financial instruments linked to digital currencies, particularly those similar to XRP and Solana, given the previous approval of Bitcoin and Ethereum ETFs.

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2024-11-08 02:42