Highlights:
- Ripple CLO credited Ripple’s leadership and legal team, stating Ripple provided the blueprint for defeating the SEC Chair.
- Alderoty credits Ripple’s legal team and XRP Army for supporting the fight against the SEC.
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Gensler’s resignation raises hopes for a more crypto-friendly regulatory environment.
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Stuart Alderoty, the Chief Legal Officer of Ripple Labs Inc., recently highlighted the firm’s contributions to the cryptocurrency industry’s “victory” against the United States Securities and Exchange Commission (SEC). In his X post on November 23, Alderoty said many contributed to the victory, but some were key. He praised CEO Brad Garlinghouse for his leadership and courage.
According to Ripple’s CLO, most core contributors prefer to remain unnamed and avoid the “Twitter spotlight.” Alderoty argues that Ripple has provided the “blueprint” for defeating SEC Chair Gary Gensler. Gensler has become a key adversary to the crypto industry due to his aggressive “regulation by enforcement” approach. Alderoty also acknowledged the significant role of the XRP Army. He expressed gratitude to the community for their constant faith and support in the project.
Victory has a thousand fathers, but make no mistake. The courage of Brad and Chris, and the resilience and expertise of Ripple Team Legal (most of whom are nameless and never sought the Twitter spotlight) paved the way. Ripple provided the blueprint to defeat Gary Gensler’s…
— Stuart Alderoty (@s_alderoty) November 23, 2024
Gary Gensler’s Resignation and Its Impact on Crypto Regulation
On Thursday, Gary Gensler announced his resignation, effective Jan. 20 next year. Gensler’s tenure saw major enforcement actions in crypto, including lawsuits against Binance and Coinbase. The crypto community welcomes his departure, hopeful for a more innovation-friendly regulatory environment. In December 2020, the SEC sued Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen, accusing them of selling unregistered XRP tokens.
The SEC classified XRP as a security. In July last year, a U.S. court ruled that XRP sales to institutional investors were securities transactions, but sales on public exchanges were not. In October, the SEC appealed the decision, requesting more clarity on XRP’s legal status.
Katrina Paglia, Pantera’s legal head, anticipates fewer actions and possible dismissals after Gensler’s departure. SEC lawsuits against crypto companies are expected to decrease or settle with no significant admissions of guilt. The SEC set a record with $8.2B in penalties for fiscal 2024, driven by a $4.5B Terraform case. Despite filing 26% fewer cases than last year, the agency initiated 583 cases.
The U.S. SEC released its enforcement report for fiscal year 2024, showing that a total of 583 enforcement actions were initiated, a 14% increase from 2023, with fines and settlements reaching a record high of $8.2 billion. The enforcement focus includes high-risk areas such as…
— Wu Blockchain (@WuBlockchain) November 24, 2024
XRP Surges: Analyst Predicts $5, Eyes $30 with Regulatory Optimism Under Trump
XRP’s price surged significantly after Gary Gensler announced his resignation. This has fueled speculation that the XRP-SEC lawsuit might be resolved before Gensler’s departure. In his latest market commentary, analyst CryptoBull suggested a possible timeline for XRP to reach $5 and then rise to $30 based on past trends.
XRP’s recent price movements have sparked optimism. After reaching the $1 mark for the first time in nearly three years, XRP has continued its upward trend. The token is now targeting $2, currently trading at $1.55 with a 34% gain over the past week.
If #XRP closes the monthly candle around $2, it rose 288%, just like it did in March of 2017. If it continues the trend, it would close around $5 in December and $30 at the end of January 2025.
— CryptoBull (@CryptoBull2020) November 22, 2024
Ex-SEC Attorney Says No Settlement, Gensler Won Half The Case
A social media user speculated that Gary Gensler and the SEC might settle before his departure to avoid a complete loss. However, former SEC lawyer Marc Fagel disagreed, stating the SEC already won half the case. He doubts the same commissioners will change their stance now, reassuring that the case won’t be dismissed.
Fagel wrote:
“They already won half the case. I don’t know why the same commissioners who voted to appeal the other half would reverse course now. Possible, but seems unlikely.”
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