James “MetaLawMan” Murphy, founder and president of the law firm Murphy & McGonigle, provided his expert analysis On how recent policy adjustments under President Joe Biden's administration will impact the ongoing legal battles, specifically the case between Ripple Labs and the US Securities and Exchange Commission (SEC). His thoughts were shared in the context of a dialogue about X.
Under the leadership of SEC Chairman Gary Gensler, the Commission has maintained a tough stance on cryptocurrencies, prioritizing investor protection through strict enforcement. However, Murphy points to a potential shift in regulatory approaches that is influenced by the broader political environment, especially with upcoming elections that could lead to leadership changes within the SEC.
Can Ripple benefit from Biden's easing of cryptocurrencies?
Murphy expressed doubts about the settlement with the SEC under its current course. “I will not settle any cryptocurrency case with the current SEC before I see how the election turns out,” he advised on X. He highlighted the potential implications of the shift in leadership, noting that “given what Trump and (Robert) Kennedy are doing , saying, I expect a very different SEC under open-minded leadership like Hester Pierce or something similar.
Pierce, known as “Crypto Mom,” is popular in the cryptocurrency community due to her oppositional views that favor a more progressive approach to cryptocurrency regulation. He speculated that the SEC's new leadership could lead to major changes, including “the voluntary dismissal of cryptocurrency cases initiated by the Gary Gensler regime where there was neither fraud nor victims.”
The Biden administration recently showed signs of a softer approach to cryptocurrencies after former US President Donald Trump publicly rallied his pro-bitcoin and crypto stance. Notably, Murphy's statement came shortly after Trump reinforced his pro-Bitcoin and cryptocurrency stance: “I will ensure that the future of cryptocurrencies and Bitcoin will be made in the USA. I will support self-custody for the country's 50 million cryptocurrency holders. I will keep Elizabeth Warren and her followers Away from your Bitcoin.
In response to these political maneuvers by his rival, Biden responded by approving an Ethereum spot ETF, a move seen as an important step forward given previous reluctance to approve cryptocurrency ETFs due to concerns about market volatility and investor protection.
When asked about the potential implications of this softened stance in the Ripple case, Murphy was careful to separate judicial proceedings from administrative shifts. “The recent softening of the Biden administration’s position on cryptocurrencies should have no impact on Judge Torres’ ruling,” he stated, stressing the independence of the judiciary.
However, he acknowledged that this could impact the SEC's position in potential settlement negotiations, noting, “I think it's possible that it could impact the SEC's negotiating position — if there are any settlement discussions.”
The discussion about X also touched on strategic considerations for Ripple. One user argued that settling might be wise given the uncertainty of future administrations, saying: “I think it's smart for Ripple to settle if given the chance. You never know who's going to win the next election. Better a devil you know than a devil you don't know.” Murphy acknowledged the validity of this cautious approach, but maintained his neutrality, saying: “I hear you. I have no opinion on what Ripple should or should not do.”
At press time, XRP was trading at $0.52737.
Featured image created with DALL·E, chart from TradingView.com
