The U.S. Securities and Exchange Commission (SEC) will hold its first closed-door meeting under Acting Chair Mark Uyeda on Jan. 23. The Crypto community is speculating that the SEC may discuss the Ripple lawsuit in this meeting. Many believe the meeting could signal progress toward resolving the case or bring important updates.
SEC to hold its first closed door meeting of 2025 under curent acting SEC chair Mark Uyeda. Source: XWhat Is the Meeting About?
The meeting will include discussions on litigation claims, settlements, enforcement actions, and administrative proceedings. These topics align with the SEC’s legal disputes, including its lawsuit against Ripple Labs. The meeting will take place remotely or at the SEC headquarters in Washington, D.C., and will only involve SEC officials, including commissioners, their counsel, and staff members.
Topics to be discussed in the meeting. Source: SECThe agenda mentions “litigation claims,” leading many in the cryptocurrency community to wonder if the Ripple lawsuit is one of the cases being reviewed. Ripple supporters are hopeful that the meeting will lead to either a dismissal or settlement of the case.
Can Pro-Crypto Mark Uyeda End The Ripple v/s SEC Case?
The Ripple lawsuit initiated in December 2020, during Gary Gensler’s tenure as SEC Chair. Gensler’s approach to crypto regulation was marked by aggressive enforcement actions, targeting several cryptocurrency companies for alleged violations of securities laws.
Gensler defended this enforcement-driven approach, arguing that most cryptocurrencies, except Bitcoin, should be classified as securities. However, his actions faced significant criticism from the crypto industry. Many, including Ripple CEO Brad Garlinghouse, labeled Gensler’s strategy as “regulation by enforcement.” They argued that it stifled innovation and lacked clarity, leaving the industry in a regulatory gray area.
Mark Uyeda, who took over as Acting SEC Chair after Gensler’s departure, is seen as a stark contrast to his predecessor. He has criticized the SEC’s heavy-handed approach to crypto regulation. Since joining the SEC in 2022, he has advocated for clearer policies and a more balanced regulatory framework.
Uyeda’s leadership has given Ripple supporters hope for a resolution to the lawsuit. His pro-crypto stance suggests a willingness to reconsider some of the SEC’s past actions, including its ongoing appeal in the Ripple case. This gives the Ripple community a hope for a favourable resolution.
Don’t Expect Too Much….This Could Just Be A Routine Meeting
While Ripple supporters are optimistic about the Jan. 23 meeting, former SEC official Marc Fagel urged caution. He noted that such meetings are routine and often involve pre-planned decisions. FOX Business journalist Eleanor Terrett echoed this view, advising the XRP community not to expect immediate announcements.
If the Ripple case is discussed during the meeting, it could lead to significant updates, such as a settlement or dismissal of the lawsuit. However, the process could also take more time, with the appeals court process potentially stretching into late 2025.
Why Is the Ripple v/s SEC Lawsuit Important?
The Ripple lawsuit began when the SEC accused Ripple Labs of selling XRP as an unregistered security. In 2023, Judge Analisa Torres ruled that XRP sales to retail investors were not securities, providing a partial victory for Ripple. However, the SEC appealed this decision, arguing that the court made errors, particularly regarding XRP’s classification when sold on digital exchanges.
Ripple has countered the SEC’s appeal, arguing that the agency’s approach is outdated and lacks merit. Ripple has also filed a cross-appeal to overturn the court’s ruling that XRP sales to institutional investors qualify as investment contracts.
While the case specifically addresses XRP, the court’s decisions and regulatory clarifications could benefit other cryptocurrencies by setting a precedent for how digital assets are treated under U.S. securities laws. The lack of clear guidelines has long been a challenge for the cryptocurrency industry. Projects and investors often face uncertainty about whether a particular token is classified as a security. This ambiguity can lead to enforcement actions, deter institutional investment, and hinder innovation.
If Ripple wins the case through the appeals process, it could encourage regulators and courts to apply similar reasoning to other tokens. This would give cryptocurrencies like Solana, Litecoin and others a stronger footing in arguing their non-security status, particularly when traded on exchanges. Additionally, projects still in development might use the Ripple decision as a guide to avoid regulatory pitfalls.
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