XRP Lawsuit: Lawyer Predicts SEC’s Next Step As January Deadline Approaches

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As a seasoned financial analyst with over two decades of experience under my belt, I have witnessed the evolution of digital assets and their regulation from close quarters. The upcoming deadline for the US SEC’s appeal in the Ripple lawsuit has stirred a whirlwind of speculation that is as exciting as a rollercoaster ride.

As the January 15, 2025 date for the U.S. Securities and Exchange Commission’s (SEC) appeal in the Ripple lawsuit approaches, there is an increasing buzz about whether the SEC might persist with their legal fight or let the deadline expire.

US SEC’s Potential Move In XRP Lawsuit as Deadline Nears

The ongoing appeal by the SEC against a July 2023 court decision, which partially supported Ripple’s stance, is currently under close scrutiny. In this ruling, U.S. District Judge Analisa Torres determined that XRP was not classified as a security when sold to regular investors via exchanges. However, she considered it a security in cases of institutional sales. This verdict weakened the position of the U.S. regulatory body.

In spite of their unsuccessful effort to overturn the decision, the U.S. Securities and Exchange Commission has moved forward by submitting a petition to contest the judgment even more thoroughly. Yet, there’s debate among legal scholars as to whether the SEC will indeed pursue this appeal or instead ask for a postponement.

Lawyer Jeremy Hogan proposed that the regulatory body could ask for a 30-day extension in order to clarify their late submission of the appeal, mentioning the possible change in leadership at the SEC. Hogan commented, “In Ripple’s position, I would accept this, and the Court likely will too,” suggesting both sides might be open to accommodating the delay.

The strategy the watchdog adopts in the XRP lawsuit may be influenced by the stance taken by the new administration under President-elect Donald Trump, particularly if Paul Atkins, a possible nominee for SEC Chair, has a specific viewpoint on this matter.

Bill Morgan Raises Concerns Over SEC’s Approach

Given the recent shift in leadership at the watchdog agency, Bill Morgan has voiced apprehensions about the potential course of Securities and Exchange Commission’s (SEC) cryptocurrency regulations. Morgan specifically mentioned that the brief for the XRP lawsuit appeal will now be overseen by Jorge Tenreiro, the newly appointed head of litigation counsel at the SEC, who has played a significant role in the legal action against Ripple.

If Paul Atkins becomes the new commissioner and he maintains his current position, Morgan expressed that he would continue to question the Securities and Exchange Commission’s strategy regarding cryptocurrencies and cryptocurrency markets.

Morgan’s comments underscore the ambiguity regarding the U.S. Securities and Exchange Commission’s future plans. Even with the impending deadline for their appeal, Morgan advises against jumping to hasty judgments about the agency’s choice.

As an analyst, I’d like to clarify that while it’s understandable for some to feel optimistic due to the SEC’s delay in filing its brief in the Appeal on January 15, 2025, it’s important not to jump to conclusions just yet. Jorge Tenreiro has mentioned that he will be the one signing it, but this doesn’t necessarily indicate a favorable outcome for the case. Let’s wait for more developments before getting too carried away with speculation.

Leadership Change at the SEC and XRP’s Future

The watchdog’s ongoing leadership transition could influence the outcome of the Ripple lawsuit. Paul Atkins, who has been confirmed as the new SEC Chair, is expected to bring a different perspective to the agency’s approach to crypto regulation.

Previously serving as a US SEC Commissioner, Atkins is recognized for championing clearer and more equitable regulatory policies, especially within the cryptocurrency market. Brad Garlinghouse, CEO of Ripple, has voiced his approval of Atkins, referring to him as an “excellent pick” to oversee regulation, underscoring the importance of practical regulations.

As an analyst, I find myself hopeful about Ripple and other cryptocurrency-related businesses under the guidance of Chairman Brad Garlinghouse. His optimism stems from the belief that, under the leadership of Jay Clayton (Securities and Exchange Commission chairman), we might witness a more accommodating regulatory landscape for our industry. He believes this could mark an end to what he terms as the “prohibition era” for crypto, paving the way for growth and innovation in this sector.

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2024-12-06 01:46