Regulation

Lawyer Predicts SEC’s Next Step As January Deadline Approaches

Published

2 weeks ago

December 5, 2024

XRP Lawsuit: As the January 15, 2025 deadline for the US SEC’s appeal in the Ripple lawsuit draws nearer, there is growing speculation over whether the U.S. Securities and Exchange Commission (SEC) will continue its legal battle or allow the deadline to pass.

US SEC’s Potential Move In XRP Lawsuit as Deadline Nears

The SEC’s appeal of a July 2023 ruling, which partially sided with Ripple, remains a major point of focus. U.S. District Judge Analisa Torres ruled that XRP was not a security when sold to retail investors through exchanges but classified it as a security in institutional sales. This decision dealt a significant blow to the US watchdog’s case.

Despite a failed attempt to appeal, the US SEC filed a motion seeking to challenge the ruling further. However, legal experts are divided on whether the SEC will proceed with the appeal or request an extension.

Attorney Jeremy Hogan suggested that the watchdog could seek a 30-day extension to explain its delay in filing the appeal, citing the potential shift in leadership at the SEC. Hogan remarked, “If I’m Ripple, I’m agreeing to that, and the Court probably will as well,” indicating that both parties might be willing to accommodate a delay.

The watchdog’s course of action in the XRP lawsuit will depend in part on how the new leadership under President-elect Donald Trump, including his potential SEC Chair nominee, Paul Atkins, will approach the case.

Bill Morgan Raises Concerns Over SEC’s Approach

In light of the changing watchdog’s leadership, Bill Morgan, has expressed concerns about the future direction of the SEC’s approach to cryptocurrency regulation. Morgan pointed out that the SEC’s brief in the XRP lawsuit appeal will be signed by Jorge Tenreiro, the new chief litigation counsel for the SEC, who has been heavily involved in the case against Ripple.

“If he remains in that position after the new commissioner, Paul Atkins, is confirmed, I will remain skeptical of the SEC’s approach to crypto and crypto markets,” Morgan said.

Morgan’s remarks highlight the uncertainty surrounding the US SEC’s strategy moving forward. Despite the approaching deadline for the watchdog’s appeal, Morgan cautioned against any premature conclusions about the agency’s decision.

“I hope no one is getting too excited about the SEC not filing its brief in the Appeal on 15 January 2025. And Jorge Tenreiro will be signing it,” he added.

Leadership Change at the SEC and XRP’s Future

The watchdog’s ongoing leadership transition could influence the outcome of the Ripple lawsuit. Paul Atkins, who has been confirmed as the new SEC Chair, is expected to bring a different perspective to the agency’s approach to crypto regulation.

Atkins, a former US SEC Commissioner, has a reputation for advocating for clearer and more balanced regulatory measures, particularly for the cryptocurrency sector. Ripple CEO Brad Garlinghouse has expressed his support for Atkins, calling him an “outstanding choice” to lead the watchdog, emphasizing the need for common-sense regulation.

With Atkins at the helm, Ripple and other crypto-related businesses could see a more favorable regulatory environment. Brad Garlinghouse has been vocal about his optimism for the future of the industry under Atkins’ leadership, noting that his approach could help end what he referred to as the “prohibition era” for crypto.