Quickly understand the history and background of various well-known coins

Ripple's XRP Legal Saga: Awaiting SEC's New Leadership Shift

Coin WorldWednesday, Jan 29, 2025 12:59 pm ET

1min read

Ripple's Legal Battle with SEC: Awaiting a Shift Under New Leadership

Ripple, the company behind the cryptocurrency XRP, has been engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC) since December 2020. The case, which alleges that XRP is an unregistered security, has seen significant developments, including a federal judge ruling in August 2024 that Ripple was liable for over $125 million. Both Ripple and the SEC have filed appeals, with Ripple contesting the decision.

Stuart Alderoty, Ripple's Chief Legal Officer, has expressed optimism that the future leadership of the SEC could shift the trajectory of the company's legal battle. In a January 28 discussion for XRP Community Day 2025, Alderoty acknowledged the SEC's bureaucratic nature and expressed his hope that under Paul Atkins, the commission might focus on fraud-related cases rather than pursuing litigation through enforcement.

"Litigation, regulation by enforcement, is not the path that this country should be pursuing. I believe the new SEC understands that, and I remain cautiously optimistic that at some point during 2025, the case will be voluntarily withdrawn," Alderoty said.

The Senate has not yet scheduled a confirmation hearing for Atkins, but if he assumes the role, Alderoty believes that the SEC could back away from civil suits against crypto firms, especially those where the main concern is a lack of registration. Ripple, which is currently involved in the lawsuit with the SEC over the classification of its XRP token as an unregistered security, has been in legal limbo since December 2020.

The outcome of the SEC's leadership transition could significantly impact Ripple's legal landscape and its future with the agency. As the company awaits a shift in the regulatory environment, investors and enthusiasts alike are watching closely to see how the situation unfolds.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.