Ripple vs. SEC Lawsuit: Gary Gensler and Jorge Tenreiro may detail their bullish sentiment toward XRP in their late-minute opening brief.
Deliberations regarding submitting an opening brief before the January 15 deadline have refocused attention on the Ripple vs SEC lawsuit. Recent developments suggest that the outgoing SEC Chair, Gary Gensler, is preparing to file a last-minute appeal before pro-crypto Paul Atkins assumes the role.
Gensler’s collaboration with Jorge Tenreiro, the chief litigation counsel of the Securities and Exchange Commission (SEC), is believed to have the potential to generate obstacles for Ripple, similar to the actions of former SEC Chairman Jay Clayton.
Last-Minute Appeal in Ripple vs SEC Lawsuit
The principal brief in the Ripple lawsuit is likely to be deliberated by the U.S. Securities and Exchange Commission (SEC) under Gary Gensler. The 2nd Circuit Court of Appeals previously extended the deadline to January 15 in response to a request from the securities agency.
Marc Fagel and James Farrell, former SEC lawyers, have clarified that the agency will persist in its litigation following an appeals-related opening brief in January. Although the agency’s leadership transition may influence progress, the SEC is more likely to be impacted by a decision to dismiss or withdraw the appeals in the lawsuit.
Additionally, the SEC’s chief litigation counsel, Jorge Tenreiro, who has been extensively involved in the Ripple lawsuit, will continue to manage the case. The legal dispute may not undergo a significant transformation with the appointment of a new SEC chair.
Judge Analisa Torres’s ruling in the Ripple Vs SEC lawsuit did not entirely resolve the industry’s uncertainty regarding whether XRP is classified as a security or commodity. Consequently, the regulator is preparing to present its arguments regarding secondary sales. This has additional implications for the crypto industry and Ripple.
It is important to note that the U.S. DOJ and Treasury Department’s FinCEN previously referred to XRP as “currency.” The SEC has now appealed the summary judgment regarding Ripple’s XRP sales through crypto exchanges, distribution to employees and others by the firm, and XRP sales by CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
Lawyers who advocate for XRP anticipate that the lawsuit will conclude under Paul Atkins
On January 20, the day of Donald Trump’s inauguration, Gensler will resign, paving the way for Paul Atkins to assume the duties of SEC Chairman. The likelihood of a successful resolution of the Ripple vs SEC lawsuit under pro-crypto Atkins is high, according to pro-XRP attorneys Jeremy Hogan, Fred Rispoli, and Bill Morgan.
Additionally, lawyers asserted that Paul Atkins was responsible for clarifying crypto regulations, which were unclear under Gensler. This could result in the termination of the Ripple lawsuit if not otherwise. Stuart Alderoty, the Chief Legal Officer of Ripple, emphasized the need to “restore trust in the agency” and “cleanse the lingering stain of Hinman.”
Price Rally and XRP ETF Probabilities
Ripple executives have previously stated that the SEC continued to present “failed arguments” in cryptocurrency cases, as Gensler reiterated that crypto has no intrinsic value. Additionally, the launch of the XRP ETF is more probable under Paul Atkins, as the Trump administration is expected to advocate for crypto regulations.
Attorney Jeremy Hogan anticipates that the Ripple vs SEC lawsuit will conclude in April or May. Additionally, he anticipates an early dismissal; however, “I would say it’s possible but maybe unlikely.”
Despite the launch of the RLUSD, analysts have maintained a generally optimistic outlook regarding the XRP price rally. According to famous analyst Ali Martinez, the price of XRP is currently undergoing consolidation within a massive bull pennant pattern. Unless the $2.73 resistance is breached, a retracement to $2.05 is feasible. This could lead to a significant increase in value to $11.
The price of XRP has increased by 1% in the past 24 hours and is currently trading at $2.44. Nevertheless, the volume of trading continues to be low. Coinglass data suggests that futures open interests have increased by 7% in the past 24 hours.
