Republican-Led SEC Could Shift Stance on Legal Battles Against Ripple and Other Crypto Firms

Trump nominated former SEC Commissioner Paul Atkins as the next SEC Chair, with Democrats Chair Gary Gensler and Commissioner Jaime Lizarraga leaving the agency

Trump administration officials are reportedly considering filing an opening brief in the U.S. Securities and Exchange Commission’s (SEC) case against Ripple Labs Inc over XRP.

The move, which would be a reversal of the SEC’s previous stance, comes as the agency is set to undergo a leadership change with the departure of Democrats Chair Gary Gensler and Commissioner Jaime Lizarraga in January. Trump has nominated former SEC Commissioner Paul Atkins to lead the agency.

Gensler and Lizarraga have been key figures in the SEC’s legal battles against Ripple and other crypto firms, including Coinbase (COIN). A Republican-led SEC could shift its stance on these cases.

However, internal SEC rules mandate that an agency vote, not the Chair alone, determines the continuation or withdrawal of the Ripple appeal.

The SEC filed a lawsuit against Ripple in December 2020, alleging that the company raised over $1.3 billion through an unregistered securities offering. Ripple has maintained that XRP is a digital asset and not a security.

The case has been closely followed by the crypto community, as it could set a precedent for how other digital assets are classified by the SEC.

In recent months, there have been several developments in the case, including the deposition of Gensler and the filing of motions by both parties.

The SEC had previously planned to file its opening brief by March 15. However, an extension was granted by the court, and the agency now has until April 17 to submit the brief.

Meanwhile, the legal battle between the SEC and Ripple continues to impact XRP demand in the market.

After dropping below the crucial support level of $0.41 on March 13, XRP price experienced a significant recovery. The rally pushed XRP price toward the next resistance level at $0.44.

As the court hearing approaches, traders are closely monitoring the possibility of a bullish breakout or a bearish reversal for XRP.