President-elect Donald Trump has appointed Paul Atkins, a pro-crypto advocate, to lead the Securities and Exchange Commission (SEC). Atkins, who previously served as an SEC commissioner under President George W. Bush, is well-respected in conservative financial circles. He will replace Gary Gensler, the current SEC Chair, who is set to step down when Trump is inaugurated in January 2025.
Atkins’ appointment comes at a critical juncture for the SEC, as the agency is currently embroiled in the high-profile Ripple lawsuit. The SEC claims that Ripple Labs violated securities laws by issuing XRP. In July 2023, Judge Analisa Torres ruled that XRP is not a security when sold to retail investors but does qualify as a security in institutional sales. This ruling has created uncertainty regarding XRP’s regulatory status, with significant implications for the broader cryptocurrency market.
Also Read: SEC Chair Nominee Expected This Week, Ripple’s Rally Linked to Gensler’s Departure
Ripple Case Developments and SEC’s Ongoing Appeal
The SEC originally sought a $2 billion penalty against Ripple, but the court ultimately imposed a much smaller fine of $125 million. Despite this, the SEC moved forward with an appeal, arguing that the court’s decision contradicted Supreme Court rulings. In October 2024, Judge Torres rejected the SEC’s appeal request, citing insufficient grounds. This has contributed to growing uncertainty regarding the SEC’s stance on regulating digital assets, with Ripple’s legal battle continuing to evolve in the courts.
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Reactions to Atkins’ potential approach to regulating cryptocurrencies have been mixed. While some in the financial sector believe his appointment signals a return to traditional regulatory practices, others in the crypto community express concerns. Legal experts, including John Deaton, argue that the SEC needs a leader who will challenge the agency’s existing approach to digital assets. However, Atkins is expected to take a more measured and incremental approach rather than drive disruptive change.
Attorney Jeremy Hogan echoed similar sentiments, noting that Atkins is likely to bring stability to the SEC, but he will not be the “bull in the china shop” that many crypto advocates hoped for. His more cautious approach could provide needed clarity, but it may fall short of delivering the sweeping regulatory reforms that some in the digital asset industry are calling for.
Will the Ripple vs. SEC Lawsuit be Dismissed?
The selection of a pro-crypto chairman Paul Atkins has raised questions about possible outcomes in the long-running lawsuit between Ripple and the SEC. Several prominent figures in the crypto industry have speculated that there would be no need to continue the case if a more friendly chairman takes office.
In a recent interview with Fox Business, former CFTC chairman, Chris Giancarlo, opined that the SEC is likely to dismiss the case, advising the agency to drop cases that have already been lost in a trial court. While these are conjectures and expectations, it is yet to be confirmed what the next step for the SEC would be.
As Ripple’s case remains unresolved, all eyes will be on Atkins to see how he navigates the ongoing legal challenges and shapes the SEC’s future stance on cryptocurrency regulation.
Also Read: Ripple CEO Brad Garlinghouse Addresses Scams with Humorous Video Amid XRP Surge
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.