Back in August, Ripple faced a significant fine of $125 million, with hopes that the lawsuit had come to an end. However, the SEC has not backed down and continues to appeal the decision. In October, the SEC officially appealed the ruling on XRP, indicating its dissatisfaction with the previous judgment and its intention to take the matter to the appeals court.
The regulatory landscape surrounding Ripple and XRP might soon see a shift as Paul Atkins prepares to replace Gary Gensler as the new SEC Chair. Known for his criticism of the SEC’s “regulation by enforcement” approach, Atkins is expected to steer the agency in a new direction. His stance could signal the end of the aggressive regulatory tactics that have caused friction within the crypto industry, including ongoing lawsuits like the one with Ripple.
Many industry insiders speculate that the SEC may start reducing or even dropping some of the lawsuits currently on the table, especially those that lack clear fraud involvement. However, Amanda Tuminelli from the DeFi Education Fund, in an interview with Thinking Crypto, believes that the SEC will not immediately drop lawsuits altogether. Instead, she predicts a shift toward more favorable settlements, commonly known as “consent decrees.” These settlements would allow both parties to negotiate a resolution while ensuring the court enforces the terms.
Tuminelli also envisions that these settlements could lead to clearer guidelines for the industry, potentially pushing the SEC to engage in more rulemaking or offer a clearer path for registration. While dropping lawsuits might not be on the immediate horizon, this shift in strategy could provide much-needed clarity for the crypto sector.
Also Read: XRP Soars Amid Ripple ETF Speculation and Market Optimism
If the SEC drops its appeal or settles the case with Ripple, XRP’s price is likely to see a boost. A positive outcome could improve market sentiment, signaling a more favorable regulatory stance for Ripple and the broader crypto industry. The ongoing case is one to watch closely, as it could pave the way for more settlements and clearer regulations under new SEC leadership.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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