Ripple News: Pro-XRP Lawyer Says $125 Million Should Go to XRP Holders, Not the SEC
Anjali Belgaumkar14 Nov 20242 min read
The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may take a new twist following the recent political developments with Donald Trump’s victory. Known for his pro-crypto stance, Trump’s win has sparked speculation about how the SEC’s approach to cryptocurrency regulation may shift
James Murphy, known as metalawman, shared his perspective on the ongoing SEC lawsuit involving XRP, suggesting that the case could be nearing its conclusion. The major question, according to Murphy, is whether the SEC will secure the $125 million held in escrow or if there will be negotiations to return some of that amount.
Pro-XRP lawyer John Deaton, an attorney representing XRP holders, added his perspective, arguing that if anyone should receive the funds, it should be the individual retail holders who were impacted by the SEC’s actions. He criticized the SEC’s approach, questioning why they filed the case to “protect” investors when, in his view, the real victims were those who suffered from the regulatory overreach.
Looking Ahead: Gensler’s Resignation and Ripple’s Legal Strategy
James Murphy also shared his thoughts on the future of the SEC under current Chairman Gary Gensler, predicting that Gensler may resign in the near future, possibly by the end of this month.
According to Murphy, Gensler’s departure could open the door for President Trump to appoint a new SEC chair. Murphy speculated that this change in leadership could significantly impact the trajectory of the Ripple case, as a new SEC head would likely bring a fresh approach to the ongoing lawsuit.
Regarding the legal timeline, Murphy noted that Ripple has until mid-April 2024 to submit its response to the SEC’s latest filings. This brief deadline, according to Murphy, suggests that the case is unlikely to be resolved quickly, with the litigation expected to drag on until at least the summer. He pointed out that new leadership at the SEC would likely take some time to settle in and understand the nuances of the case, potentially delaying any final decision or settlement.
