The Potential Impact of the Biden Administration on the Ripple vs SEC Lawsuit and its Implications for XRP
James Murphy, also known as “MetaLawMan,” the founder and chairman of Murphy & McGonigle law firm, recently provided an analysis of how the policy adjustments made by President Joe Biden’s administration could impact the ongoing Ripple vs. SEC lawsuit. Murphy shared his insights on Twitter, emphasizing the potential effects of these regulatory changes in light of the current political shifts in the United States. The broader political landscape and upcoming elections could lead to significant changes, especially considering SEC Chair Gary Gensler’s strong support for cryptocurrency regulation.
Murphy also cautioned against settling with the SEC, given the current trajectory of the agency. He suggested that Ripple may benefit from waiting to see the results of the election, as there could be a change in leadership at the SEC.
“I wouldn’t settle any crypto case with the current SEC before seeing how the election turns out,” Murphy advised.
Furthermore, Murphy highlighted the possibility of a more open-minded leadership, similar to that of Hester Peirce, which could result in the dismissal of many crypto cases initiated under Gebsler’s strict policies, particularly those lacking evidence of fraud or victims.
President Biden’s administration has shown a softer stance on cryptocurrencies, as evidenced by the recent approval of a spot Ethereum ETF. This signals a more inclusive approach to crypto, contrasting with former President Donald Trump’s pro-crypto stance. Biden’s policies were influenced by Trump’s commitment to protecting crypto interests and promoting self-custody among American crypto holders, reflecting a strategic response amid the political battle. While this shift towards a more crypto-friendly system under Biden could have a significant impact on the regulatory framework, it does not directly influence judicial decisions.
Murphy pointed out that the independence of the judiciary ensures that Biden’s softened stance on crypto would not have a substantial effect on Judge Torres’s ruling in the SEC vs. Ripple lawsuit. However, it could influence the SEC’s approach to settlement discussions. Additionally, Murphy suggested that Biden’s softened stance on crypto could also alter the SEC’s negotiation position.
Therefore, these discussions about Ripple’s legal strategy highlight the strategic dilemma facing the company. Some users advocate for settlement to mitigate the uncertainties associated with future administrations. While Murphy acknowledged these viewpoints, he refrained from providing specific advice on Ripple’s course of action.