The SEC to dismiss the Ripple case? The former CFTC chairman thinks so

TL;DR

Ripple’s legal battle with the SEC sees renewed optimism with the resignation of Gary Gensler and speculation the case is under new leadership. Legal experts suggest a possible $125 million settlement or restructured terms, although opinions on the severance vary. Is the end near?

Despite the many recent developments, the lawsuit between Ripple and the US Securities and Exchange Commission (SEC) is still 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 had reason to celebrate recently. First, they applauded the presidential victory of Donald Trump, who promised to fire SEC Chairman Gary Gensler on Day 1 of taking office. Later, the head of the regulator (who is known for his anti-crypto stance) confirmed that he will leave his post on January 20 (the day that marks Trump’s inauguration).

As expected, these developments have led to a massive resurgence in the price of XRP and speculation that the legal battle will soon be officially resolved under Gensler’s successor.

More recently, Chris Giancarlo (former chairman of the CFTC) stated that the SEC may drop the case during the Trump administration.

“I would recommend that regulatory agencies drop a lot of these cases where they’ve lost. I think they should drop the XRP case. I’d bet they would,” he added.

The possible scenarios

US Attorneys Jeremy Hogan and Fred Rispoli also touched on the matter recently. The former predicted that the Commission might dismiss all non-fraudulent crypto lawsuits filed over the years. He believes the Ripple case could be settled for the previously ruled 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,” Hogan said.

Rispoli thinks dropping the lawsuit is “unrealistic,” saying the $125 million penalty for Ripple is the biggest win the SEC can get. The lawyer also predicted that the potential new leadership of the watchdog “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.

Meanwhile, Ripple’s CLO Stuart Alderoty recently sparked rumors that a resolution of the case could be around the corner. In a mystical post on X, he hinted at a complete victory in the legal arena, praising the efforts of CEO Brad Garlinghouse and the entire team.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!