Ripple lawsuit could see major changes under new SEC leadership

The Ripple (CRYPTO:XRP) vs. SEC lawsuit, which began in 2020, is at a pivotal juncture with the appointment of Paul Atkins as the new SEC Chairman.

Atkins, replacing Gary Gensler under the incoming administration, is expected to take a different approach to crypto regulations, potentially impacting the ongoing legal battle between Ripple and the SEC.

The case has garnered significant attention due to its implications for the broader cryptocurrency market.

Former SEC lawyer Marc Fagel noted that while the court found Ripple’s institutional sales violated securities laws, programmatic sales were not deemed illegal.

These programmatic sales are currently under appeal, leaving the case’s outcome uncertain.

Fagel emphasised that Judge Torres, who presided over the case, partially agreed with the SEC’s claims.

Specifically, she ruled that Ripple had raised over $700 million through unregistered securities offerings but disagreed with the SEC on programmatic sales.

“The court found institutional sales to violate the law, but not programmatic sales,” Fagel explained.

“If the new administration drops the appeal, the Second Circuit won’t have the opportunity to weigh in,” he added.

The crypto community is hopeful that the incoming administration might choose to settle the case or drop the appeal altogether.

Such a move would signal a departure from Gensler’s stringent regulatory stance, which faced criticism from both retail and institutional investors.

The Ripple lawsuit remains a critical case for the cryptocurrency sector.

A resolution in Ripple’s favor or a dismissal of the appeal could set a precedent for future regulatory approaches to crypto, potentially boosting market confidence.

At the time of reporting, the XRP price was $2.31.