Paul Atkins Selected to Lead SEC, Hopes to Restore Trust
President-elect Donald Trump has chosen Paul Atkins, former SEC commissioner, to take over as the new SEC Chair, replacing Gary Gensler. Many are optimistic that Atkins will be able to repair the damage caused by Gensler’s leadership, which eroded trust in the SEC among both retail and institutional investors. Some believe that Gensler’s decisions were influenced by anti-crypto forces like Elizabeth Warren and the banking cartel.
The Ripple vs. SEC Case
One of the most closely watched cases during Gensler’s tenure was the Ripple vs. SEC lawsuit that began in 2020. With Paul Atkins now at the helm of the SEC, there is hope within the crypto community that the case may be dropped or settled. However, since the case is currently in appeals, the final outcome remains uncertain. A decision to drop the case could signal a significant shift in the SEC’s approach to crypto-related matters, but the resolution will ultimately depend on the progress of the appeals process.
Will The SEC Drop The Appeal?
Former SEC lawyer Marc Fagel has shed some light on the ongoing legal battle, explaining that while the court did find institutional sales to be in violation of the law, the issue of programmatic sales is still under appeal. If the new administration decides to drop the appeal, the Second Circuit Court will not have the opportunity to review the case.
Fagel also clarified that while Ripple was accused of selling unregistered securities, the court found that some of their sales involved securities while others did not. Judge Torres, who presided over the case, did not completely side with the SEC, but did rule that Ripple unlawfully raised over $700 million through an unregistered securities offering.
It remains to be seen how the SEC under Paul Atkins’ leadership will handle the Ripple case and other crypto-related matters moving forward. The crypto community is eagerly awaiting the outcome of the appeals process and the potential implications for the industry.