Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty had a private dinner with President-elect Donald Trump on January 6. This meeting occurred just days before two critical events: the SEC’s January 15 deadline to file an appeal in Ripple’s legal case and SEC Chair Gary Gensler’s resignation on January 20. Garlinghouse described the dinner as a “great start to 2025.”
Ripple’s CEO Brad Garlinghouse had dinner with Donald Trump. Source: XIs There Any Connection Between the Meeting and the Appeal Deadline?
The meeting came at a pivotal moment for Ripple. The SEC’s January 15 deadline to appeal Judge Analisa Torres’ ruling looms large, with Gensler stepping down just five days later. The case, filed in December 2020, accuses Ripple of selling XRP tokens as unregistered securities. Judge Torres ruled in July 2023 that Ripple’s programmatic sales of XRP did not meet the Howey Test for securities, though the company was fined $125 million for institutional sales.
Paul Atkins, who is set to replace Gensler, is known for a more balanced regulatory approach. He seems to prefer negotiations over aggressive lawsuits. Many in the crypto industry believe Atkins’ leadership could lead to more favorable outcomes for Ripple and other crypto companies.
Trump’s administration is expected to support innovation and reduce regulatory hurdles. Ripple may see this as an opportunity to resolve its legal issues and gain clarity for XRP.
Could the Meeting Influence the SEC v/s Ripple Case?
The timing of Garlinghouse’s meeting with Trump has raised questions about its connection to the SEC’s appeal decision. While no direct link has been confirmed, the meeting highlights Ripple’s efforts to align itself with the incoming administration. Trump’s support for reducing regulatory hurdles and Atkins’ expected leadership style may encourage the SEC to pursue a settlement instead of prolonging litigation.
Legal experts like Jeremy Hogan and John E. Deaton have cast doubt on the SEC’s chances of success on appeal. Judge Torres’ ruling was narrowly tailored to the facts of Ripple’s case, making it difficult to overturn. Deaton also pointed out that even if the SEC wins its appeal, the case would return to Judge Torres for further proceedings, delaying resolution and potentially weakening the SEC’s position. If the case reaches the Supreme Court, Deaton believes Ripple is likely to prevail.
What’s at Stake for XRP and the Crypto Industry?
The resolution of Ripple’s legal battle could impact XRP and the broader cryptocurrency market. A favorable outcome for Ripple could bring much-needed regulatory clarity, limiting the SEC’s ability to classify tokens as securities. This would encourage innovation and investment in the U.S. crypto industry.
For XRP, a favorable resolution could lead to a price recovery. The token is still far below its all-time high of $3.55, reached in 2018. Investors are waiting for regulatory clarity before making significant moves. However, if the SEC proceeds with its appeal, the case could drag on for years, keeping the market uncertain.
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