XRP Surges as SEC Legal Deadline Looms, New Leadership Approaches

NEW YORK, N.Y. — XRP, the cryptocurrency tied to Ripple Labs, surged 8% in Tuesday’s trading as investors anticipated a key legal deadline in the ongoing case between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC must file an appeals brief by Wednesday, Jan. 15, 2025, to challenge a 2023 court ruling that significantly reduced Ripple’s penalty from $2 billion to $125 million.

The SEC initially sued Ripple in 2020, alleging the company sold XRP as an unregistered security. A federal judge ruled in August 2024 that XRP did not necessarily qualify as a security, a decision the SEC is now appealing. Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC’s persistence, calling it a “waste of time and taxpayer dollars.” He expressed confidence in Ripple’s position and optimism about resolving the matter under new SEC leadership.

SEC Chairman Gary Gensler, a frequent target of criticism from the crypto industry, is set to step down on Jan. 20, 2025, as President-elect Donald Trump takes office. Trump has pledged to replace Gensler with Paul Atkins, a former SEC commissioner viewed as more favorable to the crypto sector. This leadership change has fueled speculation that the SEC may drop its case against Ripple, further boosting investor confidence in XRP.

Ripple CEO Brad Garlinghouse hinted at a potential shift in the SEC’s enforcement approach under the new administration. “We look forward to working with new SEC leadership to resolve this matter,” he said. Meanwhile, the broader crypto market also saw gains, with Bitcoin rising 4.5% and Ethereum climbing 6.2%.

The outcome of the SEC’s appeal could have significant implications for the crypto industry. If the SEC files its brief, the case will proceed to an appellate court. However, if the agency delays or abandons the appeal, XRP could experience even stronger bullish momentum. Ripple and its executives have already made significant political contributions, including $45 million to the Fairshake PAC, which supports pro-crypto candidates, signaling their commitment to shaping favorable regulatory conditions.

As the deadline approaches, all eyes are on the SEC’s next move and the potential impact on XRP’s price and the broader cryptocurrency market.