SEC to Dismiss the Ripple Case? Former CFTC Chairman Thinks so

As a seasoned researcher with a keen interest in blockchain technology and financial regulations, I have closely followed the Ripple-SEC legal battle since its inception. My personal involvement in the crypto space dates back to the early days of Bitcoin, making me a witness to the evolution of digital assets and their interactions with traditional finance.


TL;DR

  • Ripple’s legal battle with the SEC sees renewed optimism with Gary Gensler’s resignation and speculation of the case being dropped under new leadership.
  • Legal experts suggest a possible $125M settlement or restructured terms, though opinions on dismissal vary.

Is the End Near?

Despite the numerous developments as of late, the lawsuit between Ripple and the US Securities and Exchange Commission (SEC) remains ongoing. It dates back to December 2020 when the regulator accused the company and some of its executives of illegally raising $1.3 billion through an unregistered securities offering by selling its native cryptocurrency, XRP.

The Ripple community has been in high spirits recently. They rejoiced at the prospect of Donald Trump’s presidential victory, who expressed intentions to remove SEC Chairman Gary Gensler on his first day in office. Subsequently, it was confirmed that Gensler, known for his unfavorable views towards cryptocurrencies, would step down from his position on January 20 – the day of Trump’s inauguration.

Unsurprisingly, these advancements have led to a significant surge in the value of XRP. There’s also chatter suggesting that the ongoing legal dispute may find resolution with Gensler’s replacement.

More recently, it was suggested by Chris Giancarlo (former head of the Commodity Futures Trading Commission) that the Securities and Exchange Commission could potentially dismiss the case during President Trump’s term.

As a crypto investor, I firmly believe that regulatory bodies should reconsider and dismiss many of the cases they’ve lost, particularly the XRP case. In my opinion, they are likely to do so if given the chance.

The Possible Scenarios

In a recent discussion, attorneys Jeremy Hogan and Fred Rispoli weighed in on the subject. Hogan suggested that the Commission may choose to dismiss all non-fraud related cryptocurrency lawsuits dating back years. He further speculated that the Ripple case could potentially be resolved for the previously determined sum of $125 million.

It’d be inappropriate to compromise the amount previously granted by a Court. The ongoing cases involving Coinbase and others are likely going to be dismissed. This process might take some time, but possibly before summer. That’s my prediction, and I stand by it, stated Hogan.

Rispoli thinks that dropping the lawsuit is “unrealistic,” claiming the $125 million penalty for Ripple is the biggest win the SEC can gain. The lawyer also forecasted that the watchdog’s new potential leadership will “recognize this whole case was idiotic and settle at that point.”

Rispoli suggested this could involve lessening the fine and recognizing that Ripple’s current XRP sales are appropriately structured, to ensure they do not qualify as investment contracts.

Simultaneously, Ripple’s General Counsel Stuart Alderoty has fueled speculation that the court case may be nearing its end. In a recent post on X, he subtly suggested a comprehensive legal victory, commending the work of CEO Brad Garlinghouse and the entire team for their efforts.

 

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2024-11-27 11:54