Recent developments suggest a potential shift in Ripple’s ongoing legal battle, possibly steering the future of cryptocurrency regulation in a new direction. The unexpected resignation of SEC Chair Gary Gensler, announced for January 20, coinciding with Trump’s inauguration, has stirred significant attention. This pivotal change has positively impacted XRP, propelling it to new yearly highs.
Key Events Impacting Ripple’s Trajectory
Adding to the momentum, Ripple’s RLUSD was launched on December 17, marking a significant stride towards global expansion. Amidst these advancements, SEC Commissioner Caroline Crenshaw faced backlash from the crypto community for her staunch anti-crypto stance, leading to her renomination being denied. These events collectively set the stage for potentially transformative changes on January 15, particularly with Paul Atkins poised to assume the role of SEC Chair. Many within the crypto community are optimistic that this transition could herald a more lenient regulatory approach towards cryptocurrencies.
What Lies Ahead on January 15?
The SEC has sought an extension for filing its principal brief in the ongoing lawsuit involving XRP and Ripple Labs, moving the deadline to January 15, 2025. According to legal expert Fred Rispoli, this phase of the case is primarily procedural, focusing on paperwork without introducing new evidence or a jury trial. There are currently two appeals underway: one initiated by the SEC and a “cross-appeal” by Ripple.
Both parties will submit an opening brief, followed by an opposition brief, and subsequently, a reply brief. The process will culminate in a 15-minute oral argument before a panel of three judges. Although brief, this argument is pivotal as the judges’ inquiries may offer insights into their preliminary views on the case. Despite the brevity of the oral argument, the entire process might extend over a year and a half.
The Future of Crypto Regulation
Regardless of the ongoing legal proceedings, there is a prevailing sense of optimism among supporters that the new administration will implement favorable measures for the crypto industry. In another positive development, Empower Oversight has called on Congress to release an SEC Inspector General report concerning former chairman Jay Clayton’s actions. This report is anticipated to strengthen the investigation before Clayton’s potential confirmation as U.S. Attorney for the Southern District of New York.
As the legal landscape continues to evolve, the cryptocurrency community remains hopeful for a future characterized by progressive and supportive regulatory measures.
