Ripple SEC Case: Will the XRP Lawsuit Be Dismissed?
Key Points:
- Speculation on the Ripple SEC case’s potential dismissal grows following Donald Trump’s election victory.
- Ripple CEO Brad Garlinghouse anticipates a resolution, hoping for clearer crypto regulations.
- Legal experts critique SEC overreach under Gary Gensler, suggesting he may resign soon.
- XRP’s price spikes 15% amid anticipation, eyeing a potential rally to $1.
As the crypto community pushes for the end of the ongoing Ripple lawsuit and calls for SEC Chair Gary Gensler’s resignation, some former SEC attorneys argue that an outright dismissal of the XRP case remains unlikely. However, the Trump administration’s crypto-friendly stance could accelerate case resolution.
Ripple CEO Brad Garlinghouse expressed optimism about a favorable end to the lawsuit, releasing a 100-day crypto agenda for Trump that includes dismissing SEC Chair Gensler and establishing regulatory clarity.
Will the Ripple SEC Case Be Dismissed?
Experts are divided on the case’s outcome as Trump prepares for regulatory changes. Ripple CTO David Schwartz criticized the SEC’s interpretation of “investment contracts,” arguing that the SEC’s approach has led to confusion over securities law. Schwartz clarifies that Ripple’s obligations lie with shareholders, not XRP holders, and that XRP’s value doesn’t depend on Ripple’s actions.
Lawyer Bill Morgan highlighted that Judge Torres ruled Ripple’s XRP sales weren’t securities since they didn’t meet the Howey test, implying Ripple’s promotion won’t affect XRP’s value. Attorney Fred Rispoli noted the case could settle, though outright dismissal is less probable.
SEC’s Focus on Secondary Market Sales
Former SEC lawyer James Farrell asserted there’s virtually no chance of dismissing Ripple or other crypto litigations. He added that if the SEC abandons the XRP appeal, it risks undermining its regulatory authority. The SEC plans to intensify its focus on secondary market sales.
Calls for SEC Chair Gensler’s resignation have grown, with critics alleging that his regulatory tactics have created uncertainty in the crypto market.
XRP Rally to $1 Anticipated
XRP is currently trading at $0.67, up over 15% in the past day, with a 24-hour trading range between $0.5898 and $0.7009. Trading volume has surged by 166%, fueled by the “Trump trade.” Analysts anticipate an XRP price rally to $1 as the Bitcoin rally stabilizes and interest in altcoins grows.
The SEC must file its opening appeal brief in the Ripple case by January 15, 2025, per the US Court of Appeals.
