Speculation grows as the SEC nears its January 15, 2025, deadline to appeal the Ripple case ruling, which classified XRP differently in institutional and retail sales.
The American Securities and Exchange Commission’s (SEC) appeal in the Ripple case is approaching its deadline of January 15, 2025, and there is ongoing speculation as to whether the SEC will continue its legal battle.
Overview of the Ripple Case
The SEC’s appeal against the divided ruling in July 2023 regarding Ripple continues to be a significant focal point. As per the ruling of U.S. District Judge Analisa Torres, XRP is not classified as a security when sold to individual investors through exchanges, but it is classified as a security in institutional transactions. This decision was a critical turning point in the SEC’s case.
However, the SEC has submitted a request for additional discussion regarding the ruling, despite its unsuccessful appeal. Nevertheless, there is a disagreement among legal professionals regarding whether the SEC will pursue an extension or continue the appeal process.
Attorney Jeremy Hogan suggested that the SEC may request a 30-day extension to explain delays in its appeal.
Case Assessment and Bill Morgan
Bill Morgan expressed apprehensions regarding the Commission’s future approach to cryptocurrency regulation in view of the changes in SEC leadership. Morgan observed that Jorge Tenreiro, the new Attorney General, is deeply involved in the Ripple case and will be responsible for approving the SEC’s appeal.
I will continue to view the SEC’s approach to cryptocurrency and crypto markets with skepticism if new commissioner Paul Atkins remains in that position.” – Morgan.
Morgan’s remarks emphasize the degree of uncertainty that exists regarding the SEC’s approach. He advised against hastily drawing conclusions about the agency’s decisions, despite the impending deadline for the appeal.
The outcome of the Ripple case may be influenced by the ongoing leadership changes within the regulatory body. The agency’s approach to cryptocurrency regulation is anticipated to be altered by the newly affirmed SEC Chairman, Paul Atkins.
Atkins, a former SEC Commissioner, is recognized for his advocacy for more equitable and transparent regulatory policies, particularly in the cryptocurrency industry. Brad Garlinghouse, the CEO of Ripple, characterized Atkins as “an exceptional choice,” underscoring the necessity of rational regulations.
Ripple and other crypto-related businesses may experience a more favorable regulatory environment under Atkins’ leadership. Garlinghouse is optimistic that Atkins’ strategy could indicate the conclusion of the “ban period” for cryptocurrencies.
Ultimately, the regulation of the cryptocurrency markets could be significantly influenced by the SEC’s strategic decisions and the progression of the Ripple case.
As the SEC’s action on January 15 and the leadership transition on January 20 could result in substantial fluctuations in the price of XRP Coin, the dynamics within the sector are continuing to be influenced by new leadership and legal developments.
