Gary Gensler, the current SEC Chair, is stepping down in January, and the role will be taken over by Paul Atkins who is considered more crypto-friendly towards crypto space.
This is a major change in the leadership as a new approach might come into play in various high profile crypto cases including the ones involving Ripple.
The Ripple lawsuit started in December 2020 when the SEC accused Ripple Labs of issuing XRP as an unregistered security and that is something Ripple thoroughly denies.
With Gensler leaving soon, there’s speculation that he might try to resolve big cases like Ripple’s before he goes. Some think a settlement could happen, but no one really knows for sure.
When Paul Atkins becomes SEC Chair, many expect a friendlier approach to crypto. He’s seen as more supportive of the industry, which could lead to changes in how the SEC handles crypto cases.
In an interview with Thinking Crypto, Ron Hammond from the Blockchain Association shared some important insights into the current uncertainty surrounding major crypto cases. He said that he has been speaking with many lawyers, involved in lawsuits and even those who aren’t. The situation remains unclear and no one really knows what will happen next.
Take the Coinbase case, for example. This case has already progressed quite far, and it seems hard to imagine either side backing down now. The SEC has been arguing that platforms like Coinbase should be treated as securities. However, some SEC commissioners, like Paul Atkins are pushing back against this view.
Hammond pointed out that the next steps could involve wrapping up these cases, especially since they may not align with the SEC’s current focus. There’s also a chance that these cases might settle out of court. But still, no one is sure yet
On top of all this, the SEC might appeal some recent legal wins for the crypto industry. For example, the Blockchain Association recently scored a big victory against the SEC’s “dealer rule,” which requires crypto businesses to register as securities dealers. This ruling could be appealed, adding even more confusion and delays to the situation.
Also Read: Ripple Whales Buys 120M XRP During Recent Market Pullback