XRP lawsuit update: Ripple-SEC case might end in 2025 with SEC leadership change

The ongoing Ripple-SEC lawsuit may see an unexpected end by 2025, thanks to potential changes in the US Securities and Exchange Commission (SEC) leadership.

With speculation growing over Gary Gensler’s resignation from his role as SEC chair, the possibility of a new, crypto-friendly commissioner looms large, bringing hope for a favourable shift in regulatory policies for the digital currency sector.

Ripple, facing charges over XRP’s status as a security, stands to benefit significantly from any leadership overhaul. Legal experts believe that with a new administration, the Ripple case could end through settlement, dismissal, or possibly legislative changes, marking a new era in cryptocurrency regulation.

Ripple case timeline

Since its initiation in 2020, the Ripple lawsuit has become a pivotal case for the crypto industry, focusing on whether XRP, Ripple’s native token, qualifies as a security. The SEC’s current stance asserts that XRP’s sale equates to selling unregistered securities, potentially violating US financial laws.

Ripple has long argued against this interpretation, stating that XRP should be viewed as a currency and not subject to securities law. Mounting political and legal pressures on the SEC’s current leadership may ultimately influence the course of this landmark case.

Potential SEC leadership shift

The possible appointment of a more crypto-friendly SEC chair could reshape the agency’s stance on Ripple and other cryptocurrency cases. Notable commissioners, such as Hester Peirce and Mark Uyeda, are seen as advocates for a less restrictive regulatory approach to digital assets.

Analysts anticipate that Peirce, often referred to as “Crypto Mom” for her pro-crypto stance, could bring forth a regulatory framework that better aligns with the industry’s needs. If Peirce or a similarly inclined leader were to assume the chair, there’s a significant likelihood that the Ripple case and similar cases could be swiftly settled or dismissed.

Could the Ripple lawsuit reach a conclusion before 2025?

Despite the lengthy proceedings, Ripple’s case has highlighted fundamental questions regarding digital assets’ classification within the US legal system. With a new SEC chair, the Ripple lawsuit might find resolution through various legal routes, including:

• Dismissal or Settlement: A new SEC chair might expedite settlements in cases like Ripple, Coinbase, and Binance, especially if they view these as overreaches under current financial laws. Many believe that resolving Ripple’s case through a settlement or outright dismissal could pave the way for a more coherent regulatory framework for crypto assets.

• Continued Litigation with New Regulations: Should Congress intervene, ongoing cases may be resolved under a revised crypto-specific regulatory code. Lawmakers could redefine how tokens are classified and traded, providing clearer guidance on digital assets’ legal status and reducing the regulatory ambiguity plaguing the sector. This approach could still see the Ripple case drawn out until these new rules are enacted.

• Legislative Pauses and Delays: Some experts suggest that courts may pause the Ripple proceedings to allow Congress time to implement crypto laws. Such a decision could enable more time for debate on digital asset classification, reducing the need for constant litigation and setting a more permanent regulatory standard.

The implications of Trump’s potential SEC appointees on the Ripple case

Legal commentators like attorney Jeremy Hogan believe that if former President Trump returns to office, he would likely prioritise rapid regulatory reforms in the SEC, especially in crypto-related cases. Unlike the current administration, a Trump-appointed SEC chair could actively seek to streamline or halt enforcement actions against digital asset firms.

Hogan and others predict that this move would lead to a notable reduction in the number of cases scrutinising crypto firms, including Ripple, potentially signalling a monumental shift in the regulatory landscape.

What would a pro-crypto SEC mean for XRP and other digital assets?

A crypto-supportive SEC could greatly benefit Ripple, creating conditions that enable broader XRP adoption and reduced legal risk for its holders. Should Ripple win its case, it could set a precedent for how other cryptocurrencies are viewed by regulators, alleviating legal concerns for many similar assets.

For the broader market, an SEC inclined toward crypto could encourage increased innovation and adoption, as firms would feel less constrained by regulatory uncertainties. This potential shift underscores the significance of the Ripple lawsuit and its role in defining the future relationship between the US government and digital currencies.

A new era for the crypto landscape?

As 2025 approaches, the outcome of the Ripple lawsuit remains uncertain but heavily influenced by the political climate surrounding the SEC. Should leadership changes materialise, XRP and the broader crypto community could see substantial regulatory easing, allowing the industry to develop with fewer legal hindrances.

The Ripple case may thus mark the beginning of a new regulatory paradigm for digital assets, one that balances innovation with transparent and consistent oversight.

The post XRP lawsuit update: Ripple-SEC case might end in 2025 with SEC leadership change appeared first on Invezz