XRP Lawsuit News: Expert Believes Atkins Won’t Dismiss Case, Settlements Likely

2 days ago 13

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Back in August, Ripple was fined $125 million, and it seemed like the lawsuit was over. However, the SEC has continued to appeal the decision. In October, the SEC officially appealed the previous ruling on XRP. The SEC was not satisfied with the judge’s decision and took it to the appeals court.

Now, Paul Atkins is set to replace Gary Gensler as the new SEC Chair. Atkins has been a critic of the tough approach, particularly his use of “regulation by enforcement,” which has been a point of controversy. Many are expecting that this strategy will come to an end under Atkins’ leadership.

There is speculation that the SEC might start reducing or even dropping some of the current lawsuits, particularly those that are seen as frivolous or not involving fraud. However, in an interview with Thinking Crypto, Amanda Tuminelli from the DeFi Education Fund suggests that while dropping lawsuits completely might not be immediate, a shift in approach is likely.

Tuminelli believes the SEC may instead pursue favorable settlements, known as “consent decrees.” These allow both parties to negotiate a resolution while the court ensures the terms are carried out. This could offer a way to resolve cases without fully dropping them.

She also hopes that these settlements could lead to clearer guidelines for the industry, possibly pushing the SEC to do more rulemaking or provide a clearer path for registration. This way, even without dropping the lawsuits, the industry could learn from the cases and better understand the SEC’s expectations.

Conclusion:

If a settlement or dismissal happens, XRP’s price is likely to rise, as this would improve market sentiment. If the SEC drops the appeal, it could signal a more friendly stance toward Ripple and the crypto industry. This is an important case to watch for both new and existing XRP holders. In short, under new leadership, the SEC might soften its aggressive stance, leading to more settlements and clearer regulations, though not necessarily dropping cases altogether.