Ripple’s Fate Hangs in the Balance 🤔

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What Might Come Next?

As the dust settles on Gary Gensler’s departure from the US Securities and Exchange Commission (SEC), the lawsuit against Ripple remains a festering wound, refusing to heal. The former Chairman’s resignation on January 20, coinciding with Donald Trump’s ascension to the presidency, has set off a chain reaction of events that may yet prove pivotal in the case.

Enter Mark Uyeda, Gensler’s successor, who has already signaled a marked departure from his predecessor’s crypto-skeptical stance. In a statement that sent shockwaves through the industry, Uyeda declared, “The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm.” 🚫

The XRP Army, ever vigilant, has interpreted this development as a harbinger of good tidings. John Deaton, the indefatigable lawyer representing thousands of XRP investors, has weighed in with his own assessment of the situation. He posits that three possible scenarios now present themselves:

  • Continuing the SEC’s appeal, a move that would see the regulator opposing a verdict from 2023, which ruled that XRP sales on public exchanges to retail investors did not constitute securities transactions.
  • A dismissal of the appeal, which would require Ripple to pay the previously ordered $125 million penalty, a sum that, while substantial, represents a mere fraction of the $2 billion the watchdog initially demanded.
  • The SEC withdrawing its appeal and scrapping the firm’s $125 million fine, a scenario that, while tantalizing, seems the most unlikely of the three.

Deaton’s prognosis is clear: “I don’t see the SEC saying: ‘No, we’re going to deny a judge’s ruling.’ So that’s why I think the middle one is the option.” 🤷‍♂️

The SEC Looks Like the Underdog 🐕

Despite the uncertainty surrounding the case’s outcome, Deaton remains sanguine, convinced that Ripple’s victory is merely a matter of time. His optimism is buoyed by Donald Trump’s newfound affection for the digital asset sector, which has seen the President launch his own meme coin, Official Trump (TRUMP). 🤣

Trump’s executive order to review the creation of a “National Digital Asset Stockpile” has also been seen as a positive development, with the effort’s scope expanding to encompass other cryptocurrencies beyond Bitcoin. 📈

As the drama unfolds, one thing is certain: the fate of Ripple hangs precariously in the balance, a pawn in a game of regulatory cat and mouse. Will the SEC emerge victorious, or will Ripple’s fortunes be transformed by the changing tides of crypto politics? Only time will tell. ⏰

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2025-01-24 14:34