Ripple vs SEC Lawsuit: Departing Gary Gensler could make final move against XRP

The lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) is back in the spotlight as the deadline for submitting an opening brief is imminent, on January 15th. With the impending change of guard at the SEC, where Chairman Gary Gensler makes way for Paul Atkins, there appears to be a strategic final move by the outgoing chairman in the making.

Last-minute appeal

XRP was previously referred to as a “currency” by the US Department of Justice and FinCEN , but the SEC has appealed the ruling on Ripple’s XRP sales, including sales through crypto exchanges, distribution to employees, and sales by CEO Brad Garlinghouse and Executive Chairman Chris Larsen.

The 2nd Circuit Court of Appeals has extended the deadline for the SEC to January 15th, following a request from the agency for more time to submit the opening brief. This suggests that Gensler, along with SEC’s chief litigation counsel Jorge Tenreiro, is making a final attempt to strengthen the case against Ripple, similar to the tactics of former SEC Chairman Jay Clayton.

Formal indications from former SEC lawyers such as Marc Fagel and James Farrell suggest that the SEC will continue its legal battle against Ripple, with a focus on the appeals around the secondary sales of XRP. The ruling by Judge Analisa Torres has not clearly defined the status of XRP as a security or commodity, which still has implications for Ripple and the broader crypto industry.

Implications for Ripple and XRP

With the inauguration of Donald Trump on January 20th, Paul Atkins will be the new SEC chairman. Pro-XRP advocates such as Jeremy Hogan, Fred Rispoli, and Bill Morgan are optimistic that under Atkins’ leadership, the lawsuit could have a favorable outcome for Ripple. They believe that Atkins’ pro-crypto stance and his pursuit of clarity in crypto regulation could lead to a resolution of the case.

Ripple’s Chief Legal Officer, Stuart Alderoty, has emphasized the need to restore trust in the SEC by removing the “Hinman stain”, referring to the controversial statements of former SEC Commissioner William Hinman about Ethereum.

The coming weeks are therefore crucial for the Ripple vs SEC lawsuit, with possible strategic legal moves from Gensler’s side and the expectation of a new direction under Atkins’ leadership. This could not only influence the future of Ripple but also the regulation of cryptocurrencies in the US.