Here’s What May Happen With Ripple v. SEC Case Under Trump Administration (US Attorney)

TL;DR

Lawyers suggest the suit could be settled for a possible $125 million settlement if the SEC leadership changes. One of them believes that a total dismissal of the case is “unrealistic”. A possible resolution next year?

The lawsuit between Ripple and the US Securities and Exchange Commission (SEC) dates back to 2020, when the watchdog accused the company and some of its executives of illegally raising more than $1.3 billion in a unregistered securities offering by selling XRP.

The case went through several ups and downs in the following years, with Ripple securing some vital (albeit partial) victories. In the summer of 2023, for example, Judge Torres ruled that the company’s sales of XRP to retail investors on crypto exchanges did not violate securities laws. Earlier this year, however, it determined that Ripple’s direct sales of its native token to institutional investors violated federal securities laws, and fined the company $125 million.

The office seemed willing to pay the penalty, thus settling the lawsuit. However, the SEC extended it by appealing the said verdict to 2023. The regulator’s action means that the official resolution of the legal battle could happen in a few years.

However, Donald Trump’s victory in the US presidential election could bring the end closer. At least, that’s what US Attorney Jeremy Hogan assumed.

Trump vowed to fire SEC Chairman Gary Gensler the first day after taking the helm. Although his inauguration is set for Jan. 20, Hogan believes Gensler will step down before then.

He predicted that the agency’s new leader could dispose of all the non-fraudulent crypto lawsuits the regulator has filed over the years. The recommendation is expected to be approved by commissioners, as the division will be made up of Republicans.

According to Hogan, this outcome would result in the settlement of the Ripple v. SEC case for the previously awarded amount of $125 million.

“It would be…inconvenient to settle for less than a court has already awarded! The Coinbase and other litigious cases will simply be dismissed. That will take some time. Not January, but maybe before the summer. This is my call, and they tie me up”, concluded the lawyer.

An additional opinion

Fred Rispoli, another US attorney who has been following the updates surrounding Ripple’s legal fight against the SEC, also weighed in. He stated that Trump’s election should be considered “good news” as it will bring “extreme changes” to the agency. He believes these amendments will come into effect in March or April next year.

Contrary to Hogan, Rispoli believes that dismissing the lawsuit is “unrealistic.” In his view, the $125 million penalty is the biggest win the SEC can get. The lawyer also predicted that the regulator’s potential new leadership “will recognize that this whole case was idiotic and it will be resolved at that time.”

“This could include a reduction in the fine and an agreement that Ripple’s current XRP sales are structured enough not to be investment contracts,” Rispoli added.

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