Will Gensler’s Farewell Move Hurt Ripple in the SEC Lawsuit?

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has witnessed significant progress. A critical ruling by Judge Torres determined that XRP, Ripple’s digital currency, does not inherently qualify as a security. Instead, its classification hinges on the particular contract or arrangement involved. Judge Torres highlighted that while institutional sales of XRP are regarded as securities due to explicit contracts, secondary market sales are not.

SEC’s Potential Appeal and Gensler’s Last-Minute Move

The pressing question now is whether the SEC will challenge Judge Torres’s decision. According to legal expert Jeremy Hogan, the SEC is expected to file an appeal by the January 15th deadline. However, Hogan suggests that this move should not be a major concern. Gary Gensler, the current chair of the SEC, might attempt a last-minute maneuver before his term concludes on January 20th. Despite Hogan’s critique of Gensler’s leadership, he believes that any last-minute actions are unlikely to create lasting effects.

Hogan compares the SEC’s potential appeal filing to “a tale told by an idiot,” implying that the effort might be futile and not influence the ultimate outcome of the lawsuit. The crypto community watches closely, eager to understand how these developments will shape future regulatory landscapes.

Crypto Community Optimistic About Future Legal Landscape

Marc Fagel, a former SEC official, has also shared his insights on the situation. He emphasized that the SEC is obligated to submit the opening brief unless there is a significant leadership change. Despite possible shifts in direction, the SEC’s legal team is compelled to proceed with the filing.

Despite the potential for last-minute maneuvers from Gensler’s team, the crypto community remains optimistic. Influential pro-crypto individuals are emerging in the government, including advocates within Congress and the previous Trump administration. This growing support fuels hope for a more favorable regulatory environment in the future.

As the deadline approaches, anticipation builds around the appeal’s outcome and the lawsuit’s future trajectory. Although uncertainty persists, it’s evident that Ripple’s legal battle with the SEC is not yet concluded.