The SEC’s appeal of the Ripple case continues. Meanwhile, more compromise and clearer crypto guidelines are hoped for under the leadership of new SEC Chairman Paul Atkins. If the SEC drops its appeal or reaches a favorable agreement under the new leadership, the XRP price is expected to rise. Under Atkins’ leadership, the hardline approach and the use of regulation through enforcement may come to an end. Here are the latest developments in the Ripple case…
Atkins development for the Ripple case: How will the court process proceed?
The SEC’s appeal of the XRP decision continues under new SEC Chairman Paul Atkins. Sparking hopes for more compromises and clearer crypto guidelines. If the SEC drops the appeal or moves towards favorable settlements under new leadership, the XRP price could rise and signal a friendlier crypto stance. In August, Ripple was fined $125 million. Indeed, the case seemed to be over. However, the SEC continued to appeal the decision. In October, the SEC formally appealed the previous ruling on XRP. The SEC was not satisfied with the judge’s decision and took it to the appeals court.
Now, Paul Atkins is set to replace Gary Gensler as the new SEC Chairman. Atkins has been a critic of the hardline approach, particularly the controversial use of “regulation by enforcement”. Many expect this strategy to end under Atkins’ leadership. There is speculation that the SEC may begin to reduce or even drop some of the existing cases, especially those that are deemed frivolous or do not involve fraud. However, in an interview with Thinking Crypto, Amanda Tuminelli of the DeFi Education Fund suggests that a complete dismissal of the lawsuits may not be immediate, but a change in approach is likely.
The case may not be dropped immediately
Tuminelli believes the SEC could instead pursue favorable settlements known as “consent decrees.” These allow both parties to negotiate a settlement while the court ensures that conditions are met. This could offer a way to resolve cases without dropping them altogether. He also notes that these settlements could lead to clearer guidelines for the industry. In particular, he hopes that it could possibly push the SEC to make more rules or provide a clearer path for registration. In this way, even if the cases are not dismissed, the industry has the potential to learn from them. So we can better understand the SEC’s expectations.
In the event of a settlement or a dismissal, the price of XRP is likely to rise as it will boost market sentiment. If the SEC drops the appeal, it may take a friendlier stance towards Ripple and the crypto industry. This is an important situation to watch for both new and existing XRP holders. In short, under new leadership, the SEC could soften its aggressive stance, leading to more compromises and clearer regulations. But it doesn’t necessarily drop the cases altogether.
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