Ripple lawsuit against SEC: $125 million penalty marks regulator largest victory
Fictitious cases will be dropped
The potential dismissal of Gary Gensler as Commissioner of the U.S. Securities and Exchange Commission (SEC) is one of the top topics in the crypto sphere.
Recently, there have been several reports confirming that his departure might happen soon, with a successor likely to be more favorable toward cryptocurrencies and the crypto industry. In the context of the Ripple case, the new SEC head could play a positive role for the issuer of XRP.
Last week, attorney Fred Rispoli, who has been closely following the Ripple lawsuit against the SEC, stated that Trump’s election could lead to “radical changes” within the regulatory agency. According to him, the $125 million fine imposed on Ripple by federal judge Torres for violating certain securities laws is likely the biggest victory the agency will get in this case.
Rispoli also believes that the potential new SEC leadership might “recognize that the whole case was foolish and stop pursuing it,” which could even include “reducing the fine and agreeing that Ripple’s current XRP sales are sufficiently structured to avoid being considered investment contracts.”
Fictitious cases will be dropped
Another prominent lawyer, Jeremy Hogan, has a slightly different view. He suggests that a new SEC head could dismiss all non-fraud-related cryptocurrency cases filed over the years. However, he thinks the Ripple case might be officially settled for $125 million, as the SEC would “be reluctant to agree to a lower amount than what has already been awarded by the court.”
Meanwhile, cases against Coinbase and other legal proceedings might be dismissed, though this could take some time, likely until summer.
Ripple CEO Brad Garlinghouse recently expressed optimism about the case on social media, suggesting that the end of this high-stakes dispute could be in sight
