Potential Outcomes for the Ripple v. SEC Case Under Trump's Administration

Summary of the Lawsuit

The Ripple v. SEC lawsuit, initiated in 2020, involves allegations against Ripple and its executives for raising over $1.3 billion through an unregistered securities offering by selling XRP. The case has seen various developments, including a significant ruling in 2023 where Judge Torres determined that Ripple's sales of XRP to retail investors did not violate securities laws. However, Ripple was fined $125 million for direct sales to institutional investors.

Implications of Trump's Election

With Donald Trump's recent election victory, legal experts suggest that the case might reach a resolution sooner than expected. Attorney Jeremy Hogan believes that Trump is likely to replace SEC Chairman Gary Gensler shortly after taking office on January 20, 2025. Hogan predicts that the new leadership may dismiss many non-fraud crypto lawsuits, including the Ripple case, leading to a potential settlement at the previously ruled amount of $125 million.

Opinions from Legal Experts

Fred Rispoli, another attorney following the case, views Trump's victory as a positive development for Ripple. He anticipates significant changes at the SEC by March or April 2025. However, Rispoli argues that a complete dismissal of the case is unlikely. Instead, he believes that the new SEC leadership will recognize the flaws in the case and may negotiate a settlement that could involve a reduction in the fine while allowing Ripple to continue its sales of XRP without being classified as investment contracts.