Expert believes Atkins won't dismiss case, likely settlements

Back in August, Ripple was fined $125 million, and the lawsuit seemed to be over. However, the SEC has continued to appeal the decision. In October, the SEC officially appealed the previous decision on XRP. The SEC was not satisfied with the judge's decision and took it to the appeals court.

Now, Paul Atkins is set to replace Gary Gensler as the new SEC Chairman. Atkins has been critical of the harsh approach, particularly his use of “management by coercion,” which has been a source of controversy. Many expect this strategy to end under Atkins' leadership.

There is speculation that the SEC may begin to reduce or even drop some of the current lawsuits, especially those that are seen as frivolous or not involving fraud However, in an interview with Thinking Crypto, Amanda Tuminelli from the DeFi Education Fund suggests that while a lawsuit may not be outright immediate, there is likely to be a shift in approach.

Tuminelli believes the SEC can pursue favorable settlements, known as “consent orders.” These allow both parties to negotiate a resolution while the court ensures that the terms are met. This may offer a way to resolve issues without letting them go completely.

She also hopes that these settlements could lead to clearer guidance for the industry, perhaps pushing the SEC to make more regulations or provide a clearer path to registration. In this way, even without dropping the lawsuits, the industry could learn from the cases and gain a better understanding of what the SEC expects.

Conclusion:

In the event of a settlement or breakout, the price of XRP is likely to rise, as this would improve market sentiment. If the SEC leaves the appeal, it could indicate a more friendly position towards Ripple and the crypto industry. This is an important issue to watch for both new and existing XRP holders. In short, under new guidance, the SEC could tone down its aggressive stance, leading to more settlements and clearer rules, though not necessarily dropping cases entirely.