The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new turn as rumors of a potential settlement circulate. These speculations come after SEC Chairman Gary Gensler announced on November 21 that he would step down on January 20, 2025. The timing of his resignation has sparked questions about its potential impact on the high-profile case, which is now in the appeal stage.
The lawsuit, initiated in December 2020, accuses Ripple of raising $1.3 billion through an unregistered securities offering involving its native cryptocurrency, XRP. With Gensler’s departure imminent, some XRP supporters have speculated that the SEC may pause or dismiss its appeal. Even though such claims lack tangible validation, they have found their way into the general XRP community as well as the entire cryptocurrency industry.
Also Read: XRP Soars 71.82% as SEC Chair Gary Gensler Announces Resignation
“Emergency Settlement” Rumors Gain Attention
Adding fuel to the fire, crypto influencer Ben Armstrong, better known as BitBoy, addressed the “emergency settlement” rumors during a live video. Armstrong acknowledged the buzz but emphasized that he could not verify the claims. He pointed out that the timing of Gensler’s resignation and a confidential SEC meeting on November 21 had led to heightened speculation.
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Regarding enforcement actions, the SEC practices convening closed briefing sessions every day to examine continuance legal issues. They speculate that the meeting discussed the Ripple issue even though no announcements were made but the releasing of information on projects. Other inside sources also chimed in including former SEC attorney Marc Fagel who said that unlike previous rumors these seem more plausible.
The rumors elicited a market response from XRP; its price rose over 40% on Friday to $ 1.60, its highest in over three years. It was also claimed that speculation of Ripple winning favor grew significantly among analysts which boosted the price.
Conclusion
As the Ripple lawsuit enters the appeal phase, Gensler’s resignation and the possibility of leadership changes at the SEC have created an atmosphere of uncertainty. The XRP community continues to monitor developments closely, awaiting clarity on the case’s outcome.
Also Read: Did Ripple Finally Defeat the SEC? Alderoty’s Cryptic Tweet Ignites Settlement Rumors
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.