The ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) could potentially be resolved through a settlement. The outcome of the case may be influenced by the upcoming US presidential election, which could lead to changes in the regulatory environment for the crypto industry.
Ripple Case Update
Under the leadership of Chair Gary Gensler, the SEC has taken a tough stance on the crypto market, filing lawsuits against major exchanges, firms, and participants. This has created uncertainty about the legal status of many crypto tokens.
However, lawyer James Murphy believes that a change in the regulatory environment is possible if the Democratic Party loses the presidency in 2024. He suggests that a settlement in the Ripple case is possible due to the upcoming election and the potential for new SEC leadership.
Murphy emphasized the distinction between purchasing XRP and shares of a company like Amazon, with the latter being categorized as a security. He commended Judge Analisa Torres for granting Ripple a partial win and acknowledging the sale of XRP tokens to institutions as securities.
As the lawsuit progresses, the SEC and Ripple are likely to appeal the court’s decisions. The SEC argues that many institutional sales were conducted outside its jurisdiction.
Upcoming Election Year
Murphy believes that the upcoming election year could be significant, as a change in SEC leadership could lead to a more cooperative approach and a greater interest in reaching a reasonable settlement in various litigation cases.
In a separate case involving the SEC and Coinbase, Murphy highlighted a notable shift in the SEC’s stance. The agency allowed Coinbase to go public in 2021 and requested Congress to grant it authority to regulate cryptocurrency exchanges. However, two years later, the SEC sued Coinbase for alleged violations of its registration as a Securities Exchange broker-dealer and clearing agency under existing SEC laws.
Murphy criticized the SEC’s action against Coinbase as a breach of the Magna Carta and the American Constitution. He believes that Coinbase will eventually prevail in the legal battle.
The potential settlement in the Ripple vs. SEC lawsuit, the evolving regulatory landscape, and upcoming elections hint at a potential shift in the digital asset sector. The industry will closely monitor the outcomes of these legal proceedings and their implications for the future of crypto regulation.