Ripple’s final move against SEC Gensler before stepping down

January 5, 2025

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Ripple's final move against SEC Gensler before stepping down

The crux of the current legal dispute between Ripple Labs and the US Securities and Exchange Commission (SEC) is whether Ripple’s cryptocurrency, XRP, qualifies as a security.

In 2020, the SEC accused Ripple of violating securities laws by selling XRP without obtaining a proper license, claiming it qualified as an unregistered security. Ripple says that XRP is a digital asset that can be compared to a commodity or currency.

In July 2023, a US district court ruled that XRP is not considered a security when sold on public exchanges but can be considered a security in institutional sales.

The SEC’s appeal against Ripple is still underway and could significantly impact the cryptocurrency market. In October 2024, the SEC appealed Judge Torres’ ruling, which stated that Ripple’s XRP sales were not securities. The SEC is scheduled to file its summary by January 15, 2025, shortly before President Trump’s inauguration.

President Donald Trump chose Paul Atkins, An advocate for cryptocurrencies, replacing SEC Chairman Gary Gensler. This shift could lead to a more crypto-friendly approach, relieving pressure on Ripple and other projects.

Meanwhile, reports indicate that Gary Gensler, along with SEC litigation attorney Jorge Tenrero, is preparing a final filing on the Ripple case before Atkins takes over. Some believe the move could pose new challenges for Ripple, similar to actions taken by former SEC Chairman Jay Clayton.

XRP has faced challenges due to a lawsuit filed by the Securities and Exchange Commission (SEC) accusing it of being an unregistered security. With SEC chair Gary Gensler is stepping downThe next administration’s crypto-friendly leadership is expected to ease regulatory pressures.

As the regulatory outlook improves, investor interest in XRP is growing, and analysts are predicting potential record highs by the end of the year. XRP’s strong presence in banking positions it for long-term growth compared to more speculative cryptocurrencies.