Ripple CLO Urges End to SEC Lawsuit on Fourth Anniversary
On the fourth anniversary of the legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC), Ripple's Chief Legal Officer (CLO) Stuart Alderoty publicly criticized the lawsuit, labeling it a “lawless lawsuit.” Alderoty urged the incoming Trump administration to address regulatory missteps affecting the crypto industry during former SEC official William “Bill” Hinman’s tenure.
Alderoty emphasized the need for legislation that promotes innovation rather than abstract regulations that contributed to the previous administration’s stance on cryptocurrency. Ripple, along with CEO Brad Garlinghouse and co-founder Chris Larsen, faces significant legal expenses, estimated at $200 million, alongside reputational damage stemming from the SEC's aggressive regulatory approach.
The case is crucial as the SEC plans to file its opening brief by January 15, shortly before Chair Gary Gensler departs. The agency's appeal regarding XRP-related distributions and sales will be reviewed in the 2nd Circuit Court.
A Glimmer of Hope
The anticipated Trump administration has generated optimism within the crypto community, with speculation surrounding a potential resolution to Ripple's legal issues. Since Donald Trump's electoral victory, XRP's market cap has increased more than fourfold, reaching $126 billion.
Industry insiders are also optimistic about achieving regulatory clarity that could enable an XRP exchange-traded fund (ETF) launch by 2025. Notable asset managers like 21Shares and WisdomTree have filed applications with the SEC for spot XRP ETFs.
XRP Price Optimism
Despite ongoing legal challenges, XRP has shown resilience, gaining over 250% in the past year. It recently rebounded from lows of $2, maintaining support around $2.21. Although XRP is currently down 42% from its all-time high of $3.84, technical charts suggest a bullish trend.
Crypto analyst Ali Martinez indicated that sustaining the $2.20 support level could allow XRP to consolidate before aiming for the $2.70 resistance. Conversely, failing to maintain this support might lead to a decline to $1.96.
Additionally, Ripple CTO David Schwartz highlighted the utility of Ripple's newly launched RLUSD stablecoin, which aims to enhance the XRP Ledger ecosystem, increase trading volume, and position XRP as a vital bridge asset, thereby boosting market activity.