The SEC underwent a leadership shift on January 20, with Gary Gensler stepping down and Paul Atkins assuming the role of chair. However, this transition has not deterred the regulator from pursuing its enforcement cases, including its appeal against Ripple’s partial victory in 2023.

Ripple’s Chief Legal Officer Stuart Alderoty criticized the SEC’s refusal to postpone the hearing, calling it a waste of taxpayer dollars and resources. He expressed confidence that the new administration might end the SEC’s “war on crypto.”

Ripple CEO Brad Garlinghouse echoed Alderoty’s sentiments, labeling the decision as “on brand” for Gensler’s enforcement-heavy approach. Ripple, proactive in shaping a more crypto-friendly political climate, reportedly contributed $25 million to the Fairshake PAC in 2024 to support pro-crypto candidates.

Despite the SEC’s ongoing actions, XRP has shown remarkable resilience. Following the SEC’s announcement of its appeal, XRP surged nearly 16%, reaching $2.99 on January 15, 2025. This price rally reflects investor optimism, even as uncertainties linger. Ripple’s partial court victory in 2023, which ruled that XRP sales to retail investors were not securities, remains a key confidence booster.

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XRP 1-Month Chart. Source: CoinMarketCap

However, Ripple has faced setbacks as well. In August 2024, a federal judge ordered the company to pay $125 million for securities violations during its fundraising efforts.

Legal experts are divided on the case’s trajectory. Securities attorney Marc Fagel predicts the case could drag on for another 10 months, though he also notes the possibility of a swift settlement under the new SEC leadership. Ripple’s legal team hopes that the new chair, Paul Atkins, might choose to drop the appeal, potentially closing the case sooner.

The case has also sparked broader debates about cryptocurrency regulations. For instance, the memecoin frenzy surrounding Donald Trump’s TRUMP token has reignited discussions on the regulatory landscape. While some legal experts criticize the SEC’s focus on Ripple, others emphasize the need for clearer guidelines to prevent market manipulation and fraud.

The outcome of the Ripple vs SEC lawsuit could set a crucial precedent for the crypto industry. A Ripple victory might establish that cryptocurrencies like XRP are not securities, offering much-needed regulatory clarity and encouraging innovation. Conversely, an SEC win could lead to stricter regulations, creating significant challenges for other digital assets and companies in the space.

Ripple’s case highlights the ongoing struggle between regulators and the crypto industry. As the legal proceedings unfold, the crypto community and investors worldwide are watching closely, knowing that the outcome could shape the future of digital assets.

XRP Eyes 60% Surge Amid Ripple’s Legal Wins and SEC Shake-Up | HODL FM
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