The recent U.S. presidential election victory of Donald Trump has sent ripples through the cryptocurrency community, particularly concerning the ongoing SEC v. Ripple lawsuit. Legal analyst Fred Rispoli has posited that a settlement could emerge as early as March 2025, potentially under the new administration’s influence.
Potential Resolution of the XRP Lawsuit
The possibility of resolving the XRP lawsuit appears more promising with Trump’s return to office. Rispoli highlights two potential scenarios for Ripple. The first involves the current SEC Chair, Gary Gensler, pushing for a settlement before any administrative changes, albeit with potential penalties that preserve some SEC control. The second, more favorable scenario for Ripple, could arise under Trump-appointed leadership, potentially revisiting or dismissing certain charges, notably those concerning XRP’s classification as a security.
Reevaluating Crypto Cases: Calls for Change
Paul Grewal, Chief Legal Officer at Coinbase, predicts the new administration may reassess ongoing crypto cases, differentiating between fraudulent activities and legitimate enterprises like Ripple and Coinbase. Grewal is optimistic that clearer regulations and fresh perspectives could usher in a fairer approach, encouraging the SEC to collaborate with the crypto industry rather than engage in protracted legal disputes. His sentiments, shared on social media, reflect a belief that voters are calling for change, especially in how crypto-related cases are managed. He encourages the SEC to pivot from strict enforcement to constructive dialogues with crypto firms and to initiate rulemaking promptly.
Ripple CEO’s Optimism for Supportive Regulations
Brad Garlinghouse, Ripple’s CEO, has embraced the electoral outcome, applauding the XRP community’s resilience. He expresses optimism that Trump’s administration could foster more favorable policies for the crypto industry, offering a respite from years of regulatory challenges. In the wake of Trump’s victory, the SEC is required to file an appeal in the Ripple case by January 15, 2025, potentially limiting the influence of the current leadership on the case’s outcome.
Trump’s Team and the Future of SEC Leadership
As Trump’s transition team evaluates potential candidates for the SEC chair, former SEC commissioners Dan Gallagher and Paul Atkins emerge as frontrunners, known for their support of regulatory clarity. Gallagher, in particular, is viewed positively by the crypto community. With this anticipated shift in leadership, the new administration aims to curtail Gensler’s regulatory reach, including numerous enforcement actions against crypto companies.
XRP Market Overview
The potential for a favorable Ripple settlement has invigorated the XRP market, propelling its price above $0.55, a peak not seen since October. Analysts project that XRP could climb to $1 if a settlement appears likely. Additionally, the Trump administration has reignited hopes for a potential XRP Exchange-Traded Fund (ETF), which a Republican-led SEC might be more open to approving, akin to Bitcoin and Ethereum ETFs. This regulatory transition under Trump could significantly benefit XRP and other digital assets.
Frequently Asked Questions
The current value of XRP is approximately $0.55331760.
When is the SEC vs. Ripple case expected to conclude?
According to legal expert Fred Rispoli, the SEC vs. Ripple case could realistically settle by early to mid-2025.
