Ripple’s Executive Chairman, Chris Larsen, held a private meeting on May 2 with newly appointed SEC Chair Paul Atkins. The confidential nature of the session has sparked widespread speculation, especially given Ripple’s ongoing legal battle with the Securities and Exchange Commission over XRP’s classification.
Though many in the crypto space anticipated a potential breakthrough or settlement development from the meeting, former SEC attorney Marc Fagel has poured cold water on such hopes.
According to Fagel, assumptions that the meeting would lead to immediate legal resolutions are unfounded. He emphasized through social media that regulatory matters of this scale typically follow a formal litigation process, not closed-door discussions.
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Despite the high-level nature of the meeting, no agenda was made public. Insiders hinted at possible discussions involving digital asset policy, innovation frameworks, or even future regulatory pathways for blockchain firms. However, sources close to the matter say the meeting may not have been directly related to resolving Ripple’s lawsuit.
Paul Atkins, known for his supportive views on crypto innovation, has recently suggested the creation of a “regulatory sandbox.” This proposal aims to give blockchain startups space to operate under less restrictive oversight. Still, there is no confirmation that this topic was formally addressed during his discussion with Larsen.
ETF Optimism Rises as XRP Holds Key Price Levels
Amid this uncertainty, XRP maintained strong performance around $2.19. The digital asset briefly dipped to $2.12 after the SEC delayed action on several crypto filings but quickly rebounded. Market sentiment remains cautiously positive, bolstered by growing expectations of institutional adoption.
Bloomberg ETF analyst Eric Balchunas recently projected an 85 percent probability of an XRP ETF approval this year. According to Balchunas, increased demand from asset managers and clearer regulatory signals could support a spot XRP product. While this does not confirm imminent action, it adds to broader investor anticipation.
Despite these developments, legal experts have warned against reading too much into high-level meetings. Fagel’s comments serve as a reminder that SEC litigation remains bound by procedure. Expectations for a swift resolution, especially through informal discussions, may be premature.
The meeting between Ripple’s Chris Larsen and SEC Chair Paul Atkins has stirred speculation, but legal insiders caution against unrealistic expectations. As XRP’s price holds firm and ETF chatter grows, regulatory clarity remains a work in progress.
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