Ripple and the Securities and Exchange Commission (SEC) have been at loggerheads since December 2020 after the regulatory agency accused the blockchain giant of allegedly violating federal security laws by issuing XRP to investors.
Even though there has been clarity in the classification of XRP, the SEC has gone further to appeal the court’s ruling potentially extending the case till 2026. However, a recent update about the leadership of the regulatory watchdog has fueled speculations about a possible termination of the lawsuit in 2025.
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Gary Gensler Announces Exit Date
Last week, a rumor began to swell in the crypto community about a possible Gensler resignation following his closing remark at a recent regulatory conference. Following the speech, the industry began speculations about an immediate step-down. However, in a November 21 X post, Gensler gave the exact date when he will leave.
In the post, Gensler disclosed that he will step down from office on January 20, 2025, the same day Donald Trump will be inaugurated. He went further to commend the agency and its dedication to providing protection for investors, facilitating capital formation, and ensuring that the markets work for both investors and companies.
Moreover, Gensler stated that it’s been an honor serving on behalf of Americans and making sure that its capital market remains the best in the world. His announcement triggered a notable rally in crypto prices as Bitcoin peaked at $99k and XRP ignited by 25% to reach $1.4. Several industry experts have also posited that 2025 might see an end to several pending crypto lawsuits
Ongoing Crypto Lawsuits May be Dismissed
Katrina Paglia, chief legal officer of Pantera, spoke at the recently concluded North American Blockchain Summit. According to her, several security lawsuits in the U.S. may “quietly go away” once Gensler exits office in January. She emphasized that many companies might agree to settle for a fine without admitting to any violations.
Moreover, she stressed that SEC’s Wells Notices may be withdrawn following the exit. Recall that Ripple, alongside other notable companies like Coinbase, Binance, and Robinhood all received a Wells Notice from the SEC, however, Paglia predicts that those companies might get relief soon as the lawsuits might lose ground and get dropped.
Additionally, Paglia expects more “no-action letters” to be issued by the SEC. For context, “no-action letters” are official documents issued by the SEC indicating that it will take no further action against a company. Paglia noted that these letters if issued, will bring much relief to the crypto industry after years of stringent regulatory policies.
Ultimately, she posited that all this may happen soon, as early as January or February next year.
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