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HomeNewsSEC's Final Push Against Ripple Under Gensler's Watch: Appeals and Controversies Amplify

SEC’s Final Push Against Ripple Under Gensler’s Watch: Appeals and Controversies Amplify

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  • The SEC appeals a court ruling favoring Ripple, intensifying its enforcement efforts as Gensler’s tenure ends.
  • Ripple anticipates a shift in cryptocurrency regulation with the incoming Trump administration.

In an unfolding saga of regulatory scrutiny, the U.S. Securities and Exchange Commission (SEC) is not letting up in its legal battle against Ripple and its XRP token, even as SEC Chairman Gary Gensler’s tenure draws to a close.

The persistence of the SEC underscores a significant chapter in the evolving narrative of cryptocurrency regulation.

A Tightening Grip as Time Winds Down

Under the stewardship of Gary Gensler, the SEC has demonstrated a stringent approach to cryptocurrency oversight, exemplified by its recent decision to proceed with an appeal in a pivotal case involving Ripple.

This decision comes despite a district court’s ruling, issued by Federal Judge Analisa Torres in 2023, which determined that exchanges’ sales of the XRP token did not violate U.S. securities laws.

Rejecting this outcome, the SEC filed a notice last October, alerting the Second Circuit Court of Appeals of its intention to challenge the judgment.

The agency’s grounds for appeal argue that the district court’s decision contradicts decades of established precedents and the overarching securities laws as interpreted by the Supreme Court.

With the procedural timeline set, the SEC was required to submit its appeal by January 15th. However, Ripple’s request to delay this submission until after the presidential inauguration was firmly denied by the SEC.

This firm stance has sparked discussions and confirmed earlier speculations that Chairman Gensler intends to leverage his final days in office to solidify his regulatory legacy.

This determination aligns with his consistent enforcement-driven approach to cryptocurrency regulation, which has been marked by a notable disregard for the broader implications for the crypto market.

As the Trump administration prepares to take office on January 20th, with Donald Trump‘s presidency expected to bring several resignations at the top of federal agencies, the future of this legal skirmish remains uncertain.

The incoming president, appointed by Trump, Paul Arkins, is anticipated to possibly shift the regulatory landscape, which could favor the cryptocurrency ecosystem.

Ripple’s Response and Industry Ramifications

In response to the SEC’s unwavering approach, Ripple’s legal team, led by Stuart Alderoty, has expressed a mix of concern and optimism.

They recognize the challenges posed by the SEC’s current trajectory but are also hopeful about the potential changes that the new administration could bring, especially given Trump’s previously stated support for Bitcoin and cryptocurrency innovations.

Ripple CEO Brad Garlinghouse echoed Alderoty’s sentiments, suggesting that the SEC’s enforcement strategy might undergo significant modifications post-Trump’s inauguration.

He criticized Gensler’s approach as overly dismissive and overly committed to a failed regulatory agenda through enforcement.

As the cryptocurrency community watches closely, the ongoing legal proceedings against Ripple will undoubtedly set precedential values for how digital assets are treated under U.S. securities law.

The resolution of this case could either reinforce the SEC’s stringent regulatory framework or usher in a new era of more favorable conditions for the development and integration of cryptocurrencies.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: [email protected] Phone: +49 160 92211628
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