The victory of Donald Trump in the 2024 U.S. presidential election has sparked renewed optimism within the cryptocurrency community, particularly regarding the ongoing SEC v Ripple lawsuit. Legal expert Fred Rispoli suggests that with a possible shift in leadership at the U.S. Securities and Exchange Commission (SEC) under Trump, the Ripple case could reach a settlement by as early as March 2025. This potential shift has caused a rise in XRP’s price, which recently hit a one-month high, trading above $0.52.
Two Possible Settlement Scenarios
Fred Rispoli outlined two scenarios for the case’s resolution:
Under the Current SEC Leadership (Gary Gensler): The first scenario suggests that under Gary Gensler’s leadership, the SEC may settle the lawsuit while imposing penalties like the $125 million fine that was previously mentioned. This scenario would maintain some level of control over the market but may avoid further litigation.
New Leadership Under the Trump Administration: The second scenario, more favorable for Ripple, involves a shift in SEC leadership, potentially by March 2025, when a new SEC chair could take office under the Trump administration. This new leadership might reconsider the case and reduce or eliminate penalties, possibly dismissing charges or redefining the status of XRP’s sales, which would be a significant win for Ripple.
Ripple CEO’s Response
Ripple CEO Brad Garlinghouse expressed cautious optimism following Trump’s election, acknowledging the prolonged challenges faced by Ripple and the wider crypto community under the current SEC. Garlinghouse highlighted the resilience of the XRP community, noting that “the tide is turning” in their favor. He also pointed out that recent court rulings require the SEC to file its appeal by January 15, 2025. If this deadline is missed, the SEC’s appeal could be dismissed, potentially limiting further actions as a new administration takes over.
SEC Chair Candidates Under Trump
As Trump’s transition team prepares for the incoming administration, names such as former SEC commissioners Dan Gallagher and Paul Atkins have been floated for the position of SEC chair. Gallagher, who is currently Robinhood’s Chief Legal Officer, is seen as a pro-innovation figure within the crypto community, potentially signaling a more crypto-friendly approach.
Trump’s administration is expected to challenge what it views as overregulation by Gensler’s SEC, especially regarding enforcement actions against crypto companies.
Market Impact: XRP Price Surge
Following the election, the market responded positively to the possibility of a settlement in the Ripple case. XRP surged in value, reaching its highest price since October 2024. Analysts speculate that the price could rise further, potentially approaching $1 if a settlement becomes imminent. Additionally, Trump’s administration may open the door to more crypto-friendly policies, including the approval of an XRP ETF, which could further propel the digital asset’s value.
In summary, the shift in political leadership under Trump is seen as a potential game-changer for Ripple, with the possibility of a more favorable settlement for the company, potentially boosting XRP’s price in the process.
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