The ongoing Ripple vs. SEC case has become one of the most talked-about legal battles in the cryptocurrency world, and with the January 15 deadline rapidly approaching, speculation about its resolution is reaching a fever pitch. Legal experts and market analysts are closely watching for any developments, with many wondering how the case will ultimately affect XRP holders.
Jeremy Hogan, a prominent legal expert, recently suggested that the case might settle in April or May, potentially resulting in a favorable outcome for XRP holders. However, questions have arisen around why a settlement would be necessary if the SEC were to lose the case. To shed light on this, former SEC attorney Marc Fagel provided some clarity.
Because both parties appealed the part of the case they lost. So the penalty is on hold pending appeal. But the new SEC administration may decide not to pursue the appeal, and perhaps that leads the parties to settle for what the court awarded.
— Marc Fagel (@Marc_Fagel) January 6, 2025
Fagel explained that the SEC did not lose entirely in the case but rather won in part and lost in part. The court ruled in favor of the SEC, stating that Ripple had illegally sold over $700 million worth of unregistered securities, particularly in institutional sales. As a result, the court imposed a $125 million penalty on Ripple. However, both Ripple and the SEC are currently appealing aspects of the case they were dissatisfied with, which has led to the penalty being put on hold during the appeal process.
This development raises the possibility of a settlement, especially if the new SEC administration, led by former SEC Commissioner Paul Atkins, opts not to pursue the appeal further. Atkins, selected by President-elect Donald Trump, is expected to replace the current SEC Chair, Gary Gensler, on January 20, 2025. Experts believe Atkins, with his extensive experience, could steer the SEC toward a more balanced approach to cryptocurrency regulation, potentially paving the way for a resolution that benefits both Ripple and XRP holders.
As the January 15 deadline approaches, all eyes are on the case, with many hopeful that a settlement could bring clarity and stability to the cryptocurrency market.
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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