The legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission might be resolved by spring 2025, said lawyer Jeremy Hogan, who has been keeping a close eye on the case and thinks it could be resolved or thrown out by April or May this year.
The prediction is made in consideration of the changed political landscape as SEC Chairman Gary Gensler is expected to leave the office, and the White House will likely appoint Paul Atkins, who is believed to be much friendlier toward the crypto space. Whatever decision the SEC will make will affect not only Ripple but also the crypto market as a whole in the near future.
The SEC vs Ripple case is a matter of whether the XRP token, created by Ripple, is an unregistered security under U.S. law. The lawsuit has lasted for years, wherein Ripple argues that XRP should not be termed a security. The SEC claims that XRP acts like an unregistered security, therefore bringing a pretty tough legal battle.
Even though it’s not clear what will happen in the case, Hogan thinks the timeline for a decision is easier to see. He said while a decision could be made by February 2025, the needed paperwork, coordination, and meetings will likely delay the resolution until April or May.
According to Attorney Hogan, the case is indeed complex, with steps that both the SEC and Ripple have to undertake to bring it to completion, like filing of documents, gathering of reports, and holding meetings. The arrival of a new leader in the SEC, Paul Atkins, is likely to impact how the case proceeds.
Ripple CEO Brad Garlinghouse also feels hopeful about working with the new SEC leaders. He believes such a change might make the crypto market clearer and could perhaps fix the lawsuit. With the deadline of January 15 approaching for the SEC to file an opening brief in the case, the event is being closely watched by those in the industry.
The SEC might make one last effort to improve its case before the leadership change happens. Legal experts think that even if the SEC does not fully drop the lawsuit, it might change its approach to focus on agreements or “consent decrees.” These agreements would let both sides work out a solution without completely ending the case.
Also Read: Ripple vs. SEC Gensler’s Final Move Before Stepping Down
