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Cryptocurrency

Ripple is optimistic as potential SEC leadership changes spark hope for lawsuit dismissal

Ripple’s Chief Legal Officer, Stuart Alderoty, hopes that a change in SEC leadership will result in the abandonment of enforcement cases against cryptocurrency startups. With Paul Atkins as the likely incoming SEC chair, there is speculation that cases involving registration concerns, such as Ripple’s ongoing challenge, may be dismissed in 2025. This development could significantly impact the cryptocurrency industry by promoting a more collaborative regulatory approach.

Ripple anticipates positive regulatory improvements in 2025. The company’s decentralized exchange (DEX) recently logged a $400 million swap volume, indicating greater acceptance. Meanwhile, Ripple continues to lobby for an XRP-based exchange-traded fund (ETF), which is gaining steam as the United States administration becomes more crypto-friendly.

Chief Legal Officer Stuart Alderoty has voiced hope that the SEC, under prospective new leadership, will cease enforcement actions against cryptocurrency firms. Speaking at the XRP Community Day 2025 event, Alderoty said that if Paul Atkins is confirmed as SEC chair, he may remove lawsuits that do not entail claims of fraud. This might have serious consequences for Ripple, which has been involved in a legal struggle with the SEC since 2020.

Alderoty questioned the SEC’s approach of “regulation by enforcement,” claiming that it promotes confusion in the crypto market. He is cautiously optimistic that a change in leadership would result in a more constructive regulatory environment. If confirmed, Atkins could herald in a new age of cryptocurrency regulation, potentially providing much-needed clarity to the industry.

Ripple executives have aggressively engaged with policymakers, with Alderoty and CEO Brad Garlinghouse attending significant events and holding conversations with government authorities. Their efforts, together with growing congressional support for crypto-friendly laws, may pave the way for more favorable rules by the end of 2025.

With regulatory tides likely reversing, Ripple has positioned itself for a future in which digital assets are treated more clearly and fairly under US law. The cryptocurrency sector will be looking intently to see how these developments play out in the coming months.

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