The legal drama between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a new turning point. As the two sides go head to head, Ripple’s Chief Legal Officer Stuart Alderoty confirmed the SEC will file its opening brief tomorrow, January 16, despite Ripple’s request for a delay. Though the request was denied, Ripple seems unfazed, with a big change at the top of the SEC coming soon.
SEC Denies Appeal
Stuart Alderoty said Ripple had offered the SEC a short extension of the deadline to file Ripple’s opening brief for the cross-appeals after Ripple’s win in court. However, the SEC refused. Alderoty expressed frustration, saying:
“On January 20, Gensler’s war on crypto ends at the SEC. We asked the SEC to agree to postpone the filing of their opening brief in their appeal of our victory (current deadline Jan 15) – and they refused. What a waste of time and taxpayer dollars.”
This rejection hasn’t deterred Ripple; the company maintains that the appeal process will work in its favor, especially with new leadership at the SEC coming soon.
SEC Leadership Shake-Up
The SEC is getting a new boss on January 20 as Chair Gary Gensler steps down; in his place will be crypto-friendly advocate Paul Atkins who has a very different approach to regulation. Ripple CEO Brad Garlinghouse didn’t miss the opportunity to take a shot at Gensler’s tenure, calling his enforcement strategy a failure.
Paul Atkins has been pro-crypto even before he was appointed. Market participants hope to see the start of his work soon, with clear guidance over enforcement as a way of regulating.
Ripple (XRP) Momentum
The Ripple team remains positive about the appeal. According to attorney James K. Filan, both Ripple and the SEC have filed a stipulation to file a deferred appendix in support of the cross-appeals in 21 days from the date of service of the appellee’s brief. This, therefore, makes the post-clearance process much more concrete.
Despite the challenges, Ripple’s previous win in which ruled that XRP was not a security when sold to the public, certainly helped their position. Alderoty said they look forward to constructive engagement under the new leadership at the SEC.
Gary Gensler’s departure marks a turning point for the crypto industry. During his tenure’, he had been criticized for his regulation-by-enforcement approach’, stifling innovation.
On the other hand, Paul Atkins’ pro-crypto reputation speaks to a new era of collaborative regulation. Industry leaders and legal experts alike think policies under Atkins will fix undefined crypto assets and make it easier for blockchain companies to get clarity from regulators.
The Ripple-SEC battle has been a test case for the industry that may set a legal precedent for future crypto regulation. It won’t just affect Ripple but the entire sector.
Conclusion
The commission will file its opening brief soon, but Ripple remains unfazed, bolstered by their previous win and the likely new leadership at the SEC. Ripple’s team has been optimistic, and each step views the upcoming appeal court process as an opportunity to further solidify their position. The XRP community and the entire crypto world will be watching since the next moves in this legal battle will set the regulatory tone for the next couple of years.
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FAQs
1. Why is Gary Gensler’s departure from the SEC important?
The regulatory approach is expected to change with Gensler’s departure. His successor, Paul Atkins, is more crypto-friendly and will likely bring clearer and more supportive policies for the blockchain industry.
2. How does Ripple plan to respond to the SEC’s appeal?
The Ripple team is quite upbeat about the appeal process considering the previous victory and more so expect better relations with the SEC under new management.
3. Why did the SEC deny Ripple’s request for an extension of the filing deadline?
The SEC did not give any reason for it but the Ripple leadership term it as unnecessary and wasteful of taxpayer money.
4. What does Paul Atkins mean for the crypto industry?
He’s crypto-friendly. This means collaboration to create a regulatory framework that enables innovation and solves the enforcement problem.
