The Ripple vs. SEC lawsuit has reached a pivotal moment this week. The regulatory body is expected to submit its opening brief by January 15. However, the upcoming shift in the SEC leadership has raised questions about the possibility of a case withdrawal.
Several experts have predicted that the SEC could drop the case, but all is speculative as the commission still has two days before the deadline. Recall that the court ruled in 2023 that XRP’s programmatic sales did not violate federal security laws, however, the SEC is expected to challenge that decision in its anticipated appeal brief.
Deadline Approaching, Will the SEC Continue With Appeal?
The crypto community is rocked with uncertainties about the direction of the Ripple vs. SEC case. While some guess that the appeal will be withdrawn, others stress that the watchdog will not end the case, however, its decision to continue would not affect a potential case dismissal.
Precisely, 36crypto previously reported an insight from a pro-XRP lawyer, Jeremy Hogan, who emphasized that the SEC’s submission of its opening brief is merely procedural and an obligation under the current leadership. He added that the filing would hold no significant implication in the future as regards a dismissal or a settlement.
“Don’t be surprised when the SEC’s brief IS filed timely and don’t be dismayed. This is still Gensler’s SEC. The filing on January 15 has NO effect on whether the case will be settled (I think likely) or dismissed by the new administration,” he said.
The current SEC chairman, Gary Gensler, is expected to leave office on January 20, less than a week after the court deadline and on the same day as Donald Trump’s inauguration. His position would be occupied by a pro-crypto figure, Paul Atkins.
Moreover, many speculate that with him in charge, the SEC could withdraw all non-fraud-related cases and shift away from “aggressive enforcement” championed by Gensler.
SEC Held a Closed Door Meeting
Meanwhile, the Securities and Exchange Commission held a closed-door meeting on January 10, discussing agendas including litigation claims and pending enforcement proceedings. While it wasn’t disclosed, crypto community members have guessed that the Ripple case was also in discussion given the timing, and the appeal deadline around the corner.
At the moment, the outcome of the meeting is still unknown, but if the SEC decides to continue with the Ripple lawsuit, it could have a significant implication on how the crypto industry is regulated and also on the price trajectory of the underlying coin, XRP.
XRP Rally Amid Crucial Court Update
Meanwhile, the price of XRP jumped significantly over the weekend following a partial Ripple court win to seal documents in the SEC case. XRP surged to a weekly high of $2.57 according to on-chain data.
The rally instituted a breakout from a prevailing symmetrical triangle pattern, and analysts now believe that the coin is ripe for a 60% toward $4 surge soon. The outcome of the January 15 deadline in the Ripple vs. SEC case will determine the price direction in the coming days.
XRP breakout of a symmetrical triangle pattern | Source: Tradingview
Meanwhile, at the time of writing, XRP traded at $2.43, representing a 3.63% decline in the last 24 hours. Also, its trading volume plummeted by 27% to rest at $6.59 billion with a live market cap of $139.1 billion.
