XRP Legal Battle Begins On Wednesday

XRP Legal Battle Begins On Wednesday

The U.S. Securities and Exchange Commission (SEC) has until January 15, 2025, to submit its initial brief in the ongoing Ripple case. The court had previously ruled that XRP, the cryptocurrency associated with Ripple, is not a security on its own when the appeal was filed.

However, the SEC has contested parts of the ruling, particularly regarding the classification of Ripple's XRP sales on cryptocurrency exchanges and private sales conducted by Ripple executives Chris Larsen and Brad Garlinghouse. These points will likely be central to the SEC's upcoming brief.

Gary Gensler, who has been at the helm of the SEC and has led a strong regulatory push against the cryptocurrency industry, is set to resign on January 20. On the same day, Donald Trump will be sworn in as president, and Gensler's position will be taken over by Paul Atkins, signaling potential shifts in the SEC's approach to crypto regulation.

Reports suggest that under the new leadership, the SEC may reduce or even drop certain crypto-related lawsuits. The agency might favor settlements, known as “consent decrees,” which provide clear industry guidelines and allow for negotiated resolutions, giving the crypto sector a clearer path to compliance while avoiding prolonged litigation.

Ripple CEO Brad Garlinghouse has expressed optimism about these developments, suggesting that Atkins may bring a more balanced, common-sense approach to the SEC. This change in leadership could potentially lead to XRP solidifying its status as a non-security, paving the way for a bullish price trend if the SEC decides to withdraw its appeal in light of these changes.