Will Gensler Pull a Jay Clayton-Style Exit? XRP at Risk
The ongoing legal battle between the U.S. Securities and Exchange Commission and Ripple has been a key issue in the future of cryptocurrency regulation. The case centers on whether XRP should be classified as a security. The SEC claims Ripple violated securities laws by selling XRP without proper licenses, while Ripple insists it is a digital asset and more like a commodity or currency.
The SEC’s appeal against Ripple is still ongoing and could have a significant impact on the cryptocurrency market. The SEC filed an appeal in October 2024, seeking to overturn Judge Torres’ ruling declaring Ripple’s XRP sales not to be securities. The agency is expected to submit a brief by January 15, 2025, days before President Trump’s inauguration.
President Donald Trump has appointed pro-cryptocurrency advocate Paul Atkins to replace SEC Chairman Gary Gensler. This could lead to a more relaxed stance on cryptocurrencies, potentially taking pressure off Ripple and other projects.
SEC Chairman Gary Gensler is reportedly preparing to file final documents related to the Ripple case before cryptocurrency supporter Paul Atkins takes over. Some believe Gensler and SEC Chief Litigation Counsel Jorge Tenreiro could pose a challenge to Ripple, much like former SEC Chairman Jay Clayton did.
What’s next?
XRP’s path to development has been rocky as the U.S. Securities and Exchange Commission (SEC) filed a lawsuit alleging that XRP is an unregistered security. With Gensler set to step down, some expect crypto-friendly leadership under the incoming administration to further ease regulatory hurdles.
As the regulatory environment improves, more investors are flocking to XRP, with analysts predicting that XRP could hit an all-time high by the end of the year. XRP’s role in the banking industry gives it a long-term growth advantage over more speculative cryptocurrencies.
