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Lawyer Predicts SEC’s Next Step As January Deadline Approaches

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XRP Lawsuit: As the January 15, 2025 deadline for the US SEC’s appeal in the Ripple lawsuit draws nearer, there is growing speculation over whether the U.S. Securities and Exchange Commission (SEC) will continue its legal battle or allow the deadline to pass.

US SEC’s Potential Move In XRP Lawsuit as Deadline Nears

The SEC’s appeal of a July 2023 ruling, which partially sided with Ripple, remains a major point of focus. U.S. District Judge Analisa Torres ruled that XRP was not a security when sold to retail investors through exchanges but classified it as a security in institutional sales. This decision dealt a significant blow to the US watchdog’s case.

Despite a failed attempt to appeal, the US SEC filed a motion seeking to challenge the ruling further. However, legal experts are divided on whether the SEC will proceed with the appeal or request an extension.

Attorney Jeremy Hogan suggested that the watchdog could seek a 30-day extension to explain its delay in filing the appeal, citing the potential shift in leadership at the SEC. Hogan remarked, “If I’m Ripple, I’m agreeing to that, and the Court probably will as well,” indicating that both parties might be willing to accommodate a delay.

The watchdog’s course of action in the XRP lawsuit will depend in part on how the new leadership under President-elect Donald Trump, including his potential SEC Chair nominee, Paul Atkins, will approach the case.

Bill Morgan Raises Concerns Over SEC’s Approach

In light of the changing watchdog’s leadership, Bill Morgan, has expressed concerns about the future direction of the SEC’s approach to cryptocurrency regulation. Morgan pointed out that the SEC’s brief in the XRP lawsuit appeal will be signed by Jorge Tenreiro, the new chief litigation counsel for the SEC, who has been heavily involved in the case against Ripple.

“If he remains in that position after the new commissioner, Paul Atkins, is confirmed, I will remain skeptical of the SEC’s approach to crypto and crypto markets,” Morgan said.

Morgan’s remarks highlight the uncertainty surrounding the US SEC’s strategy moving forward. Despite the approaching deadline for the watchdog’s appeal, Morgan cautioned against any premature conclusions about the agency’s decision.

“I hope no one is getting too excited about the SEC not filing its brief in the Appeal on 15 January 2025. And Jorge Tenreiro will be signing it,” he added.

Leadership Change at the SEC and XRP’s Future

The watchdog’s ongoing leadership transition could influence the outcome of the Ripple lawsuit. Paul Atkins, who has been confirmed as the new SEC Chair, is expected to bring a different perspective to the agency’s approach to crypto regulation.

Atkins, a former US SEC Commissioner, has a reputation for advocating for clearer and more balanced regulatory measures, particularly for the cryptocurrency sector. Ripple CEO Brad Garlinghouse has expressed his support for Atkins, calling him an “outstanding choice” to lead the watchdog, emphasizing the need for common-sense regulation.

With Atkins at the helm, Ripple and other crypto-related businesses could see a more favorable regulatory environment. Brad Garlinghouse has been vocal about his optimism for the future of the industry under Atkins’ leadership, noting that his approach could help end what he referred to as the “prohibition era” for crypto.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.

US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges

The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.

Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.

Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

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Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.

Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin

In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.

Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.

Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.

“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.

In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.

Industry Players Are Bracing For New Stablecoin Regulations

Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.

For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.

Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.

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FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

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The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.

New FDIC Guidelines on Crypto-Related Activities

The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.

Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.

This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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