XRP Lawsuit Update: Trump Win to Boost Early Ripple-SEC Settlement? Analyst Weighs In

Donald Trump’s recent U.S. presidential election victory has sparked fresh optimism in the cryptocurrency world, particularly regarding the long-standing SEC v. Ripple lawsuit.

Legal analyst Fred Rispoli believes that with the new administration, a settlement could be possible as early as March 2025, potentially marking a significant turning point for Ripple and the crypto market.

Could a Trump-led SEC bring the regulatory clarity the market has been waiting for? Let’s dive into the path ahead.

Ripple’s Settlement: Two Possible Outcomes

Rispoli outlines two paths Ripple could take following Trump’s victory.

In the first scenario, the current SEC leadership, under Chair Gary Gensler, might attempt to settle the case before any changes in leadership. However, this option would likely come with penalties, allowing the SEC to maintain some control over Ripple’s operations.

The second scenario, which may be more favorable for Ripple, could occur if new Trump-appointed leaders take over the SEC. In this case, the penalties could be re-evaluated or even reduced, with certain charges—particularly XRP’s classification as a security—potentially being dismissed.

Will the SEC Change Its Approach?

Paul Grewal, Coinbase’s Chief Legal Officer, suggests that the new administration may take a different view on Gensler’s aggressive stance on crypto enforcement. Grewal anticipates the incoming administration will start to distinguish between outright scams and legitimate crypto companies like Ripple and Coinbase. In a recent post on X, Grewal highlighted that voters appear to want a change in the way crypto cases are handled.

He urged the SEC to move away from enforcement and start meaningful rulemaking, creating clearer guidelines that could encourage open dialogue with the crypto industry.

Ripple CEO Anticipates Supportive Regulations

Ripple CEO Brad Garlinghouse has welcomed this change, commending the resilience of the XRP community. He expressed optimism that Trump’s administration could bring in policies more favorable to the crypto industry, offering a much-needed reprieve after years of regulatory struggles. Following Trump’s win, the SEC has been directed to file an appeal in the Ripple case by January 15, 2025, setting the stage for a potential limit on the current leadership’s influence on the case.

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Trump’s Team Eyes Pro-Crypto Leadership for SEC

Trump’s transition team is considering former SEC commissioners Dan Gallagher and Paul Atkins, both known for advocating regulatory clarity, as candidates for SEC Chair. Gallagher, especially, is viewed positively within the crypto community.

If appointed, it’s expected they will aim to curb Gensler’s regulatory reach, including frequent enforcement actions against crypto companies.

XRP Market Analysis

Trump’s win and the prospect of a Ripple-friendly settlement have already positively impacted XRP, pushing its price above $0.55, the highest since October. Analysts predict that XRP could even reach $1 if a settlement appears likely. There is also hope for an XRP ETF approval, which could be more likely under a Republican-led SEC, following recent Bitcoin and Ethereum ETFs. This potential regulatory shift could benefit XRP and the wider digital asset market.

With a new administration in place, the outcome of the SEC v. Ripple case could signal a fresh chapter for the crypto market. We’re excited to watch what unfolds.