- Paul Atkins’ SEC role raised hopes but hasn’t sped up the XRP case.
- A legal pause opens settlement talks, but there is no resolution yet.
- XRP dips 2% as lawsuit uncertainty continues.
Despite Paul Atkins being appointed as Chair of the U.S. Securities and Exchange Commission (SEC), hopes for a quick wink of the XRP lawsuit are fading. However, initial optimism of Paul Atkin’s leadership had been tempered by legal experts’ mixed reactions. However, regulatory developments might now have further internal delays while trading activity around XRP continues to be strong.
Legal Experts Divided Over Impact of New SEC Leadership on XRP Case
When Paul Atkins was appointed by the SEC, initial optimism ran high in the financial market, most particularly in those players who stood to gain from quicker crusade on cryptocurrency and the XRP lawsuit. He was perceived as a potential catalyst for speeding up the other cases, which have been ongoing for years. Yet, regulatory insiders have countered the notion that his leadership will automatically turbocharge the rate the US moves with respect to crypto industry rulemaking.
James Farrell, who used to be a SEC attorney, also dismissed the idea of the arrival of Paul Atkins changing the trajectory of the Ripple case substantially. Paul Atkins took the helm, so Farrell argued that key legal decisions regarding motions for stays and dismissals had already been made. In other words, the timeline for progress within the SEC is dependent on internal evaluations and well laid out procedures.
At the same time, pro-XRP attorney Fred Rispoli submitted statements to the court that Director Christine Atkins could use her position to shorten the enforcement delays. But the agency’s transition in leadership presents another need for the SEC to prove its reform commitments. The divide between legal professionals persists on the SEC’s course of action and uncertainty abounds within the regulatory landscape.
Legal Pause Suggests Progress, But Resolution Timeline Remains Uncertain
In an agreement, the U.S. Court of Appeals put aside the proceedings between Ripple and the SEC for what it sees as a closer period for engaging in negotiations, of possible settlement. This marks a noteworthy development of the case with such a temporary stay, but does not signal that the case will be wrapped up any time soon. Rather than that, it presents an extended timeline beyond which the final outcome could be left deferred.
The SEC is expected to file 60-day status update to the court to confirm no progress has been made during the pause and the court has previously asked the SEC to provide it. While the procedural break has been seen as strategic, it has stoked new speculation as to how long the legal war could go on. Ripple and the SEC could set the stage for a settlement with this break, as legal analysts think the companies could use this to reach terms without going through any of this prolonged courtroom conflict.
But jurists note that enforcement pauses are typically brief in regulatory disputes and are not necessarily an indication of changes in leadership. In recent cooperation, however, the parties appear to have been discussing behind the scenes, analysts say, but there is no guarantee of speed in closing. Extension of the XRP lawsuit is partly countered by the fact that the SEC is not completely done with broader regulatory revisions.
XRP Price Dips as Market Eyes Ongoing Legal Developments
XRP token price retreated slightly dipping 2% to trade at $2.09. Despite such high volumes of trading, the price movement was significant as it made over $2.43 billions. After all, XRP previous spiked to its apex at $2.14, but fell once more as the legal landscape remained unclear.
The market’s reaction to regulatory development continues to be cautious, prices move depending on uncertainty regarding the course of the lawsuit. First, new leadership at the SEC seemed to bring renewed hope that the process of enduing might be expedited, but experts are divided on when that final ruling will emerge. Semiconductor analysts say that until key regulatory frameworks are fully developed, it could be a time when market activity stays muted. The legal process continues as the varying expert opinions between optimistic and conservative forecasts continue.
