Ripple VS SEC: What Happens Next as Gensler’s Term Ends?

As a seasoned crypto investor with a keen eye for regulatory developments, I find the upcoming leadership change at the SEC intriguing. Gary Gensler, a stalwart in financial regulation, has been a formidable presence, and his departure leaves a void that Paul Atkins is poised to fill.


In January, Gary Gensler, the present chair of the Securities and Exchange Commission (SEC), plans to step down. His position is set to be assumed by Paul Atkins, who is known for his supportive stance on cryptocurrencies within the digital asset sphere.

A significant shift has occurred in the leadership, potentially bringing about fresh strategies in high-profile cryptocurrency cases, such as those related to Ripple.

In December 2020, the Securities and Exchange Commission (SEC) initiated a lawsuit against Ripple Labs, claiming they distributed XRP as an unregistered security. However, Ripple strongly disputes this allegation.

With Gensler’s imminent departure, there is conjecture that he may aim to finalize significant cases such as the ongoing Ripple lawsuit prior to his exit. It has been proposed that a resolution might be reached, but it remains uncertain for certain.

Upon Paul Atkins assuming the role of SEC Chairman, there is an anticipation for a more accommodating stance towards cryptocurrencies. His industry-friendly reputation suggests potential modifications in the SEC’s approach towards handling crypto-related matters.

In an interview with Thinking Crypto, Ron Hammond from the Blockchain Association shared some important insights into the current uncertainty surrounding major crypto cases. He said that he has been speaking with many lawyers, involved in lawsuits and even those who aren’t. The situation remains unclear and no one really knows what will happen next.

Take the Coinbase case, for example. This case has already progressed quite far, and it seems hard to imagine either side backing down now. The SEC has been arguing that  platforms like Coinbase should be treated as securities. However, some SEC commissioners, like Paul Atkins are pushing back against this view. 

Hammond noted that it’s possible the following actions might include concluding these matters, as they might not align with the SEC’s present priorities. Additionally, there’s a possibility that these cases could be resolved outside of a trial, but at this point, nothing has been definitively decided.

Additionally, there’s a possibility that the SEC may challenge some recent court decisions favorable to the cryptocurrency sector. For instance, the Blockchain Association successfully contested the SEC’s “dealer rule,” which mandates crypto businesses to register as securities dealers. If this ruling is appealed, it could lead to further complications and delays in the current scenario.

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2024-12-07 20:52