Why this week could be a turning point in demand

TL;DR

Ripple’s legal battle with the SEC is coming to a critical juncture, as the agency is due to file its opening brief by January 15. With the resignation of Gary Gensler on January 20th, incoming chair of the pro-crypto SEC, Paul Atkins, is hoping for a favorable resolution, despite the complexity of the case. temper expectations. The deadline is approaching

The legal fight between Ripple and the US Securities and Exchange Commission (SEC) began in December 2020. The regulator then sued the company, accusing it and some of its executives of illegally raising more than $1.3 billion in an unregistered securities offering through the sale. XRP.

Despite the numerous judgments and developments in the following years, the lawsuit is still ongoing. Last year, for example, Judge Analisa Torres ordered Ripple to pay a $125 million civil penalty for violating federal securities laws through its institutional sales of XRP. Before that, it found that the company’s programmatic sales of XRP to retail customers through centralized exchanges did not violate the rules.

The company was willing to pay the fine, which would have officially settled the case. After all, the sum represented only a fraction of the $2 billion the SEC initially requested. However, the watchdog filed a last-minute appeal, and the lawsuit entered a new phase, consisting of files and an informational process.

It’s worth mentioning that the agency’s petition will be dismissed unless it files an opening brief against Ripple tomorrow (January 15).

According to some legal experts, the SEC will not miss the deadline. Jeremy Hogan stated that people should not be surprised if this is the case since the agency is still headed by Chairman Gary Gensler. The latter is known as a critic of the digital asset industry, and the Commission filed countless lawsuits against crypto companies during his tenure.

“The SEC will file its brief on January 15th because it has to, but that doesn’t mean the incoming SEC officials won’t settle the case. Nothing changes,” he added.

Waiting for the next president

It’s worth noting that Gensler has less than a week left at the helm of the securities regulator. He decided to resign on January 20 after Donald Trump promised to fire him on Day 1 after taking office in the White House.

The next head of the SEC will be Trump’s nominee, Paul Atkins. He has expressed a pro-crypto stance in the past, sparking enthusiasm throughout the XRP army.

Some of the optimists hope that the next leadership of the Commission will take a less hostile position towards the cryptocurrency industry and push the case against Ripple to a favorable resolution soon. However, they should have somewhat realistic hopes, given the complexity of the entire legal process.

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