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President-elect Donald Trump has selected Paul Atkins, former SEC commissioner, to lead the SEC. Atkins is set to replace outgoing SEC Chair Gary Gensler. Many are hopeful that Atkins will undo the damage caused by Gensler, whose leadership led to a loss of trust in the SEC. Retail and institutional investors alike were frustrated under Gensler’s rule, which some believe was influenced by anti-crypto forces like Elizabeth Warren and the banking cartel.
One of the key cases that has drawn significant attention is Ripple vs. SEC, which began in 2020. With the recent appointment of Paul Atkins as SEC Chairman, the crypto community is hopeful that the case might be dropped or settled. However, since the case is currently in appeals, the outcome remains uncertain. If the case is dropped, it could mark a significant shift in how the SEC handles crypto-related matters, but the final decision will depend on the developments in the appeals process.
Will The SEC Drop The Appeal?
Former SEC lawyer Marc Fagel explained that while the court found institutional sales to be in violation of the law, it did not rule against programmatic sales, which are currently under appeal. However, if the new administration drops the appeal, the Second Circuit won’t have a chance to weigh in.
Fagel further clarified that although Ripple was sued for selling unregistered securities, some of their sales were found to involve securities, while others were not. When a user commented that Judge Torres disagreed with the SEC, Fagel responded, noting that she only disagreed with them in part. She also agreed with the SEC, ruling that Ripple illegally raised over $700 million in an unregistered securities offering.
“The court found institutional sales to violate the law, but not programmatic sales. The latter is on appeal. Though if the new administration drops the appeal, we won’t have a chance to have the Second Circuit weigh in, unfortunately,” Fagel wrote.