The recent closed-door meeting between Ripple's Chris Larsen and new SEC Chair Paul Atkins attracted attention in the crypto community. Despite high expectations, lawyer Marc Fagel emphasized that such meetings do not lead to judicial conclusions.
Why the Meeting Doesn’t Affect the Court Case
Comments from Marc Fagel, a former SEC regional director, note that while the SEC Chair has significant influence over policy and priorities, the ongoing lawsuit between Ripple and the SEC is overseen by Judge Analisa Torres in the Southern District of New York. Despite the meeting creating certain expectations, no legal resolutions can be made there.
Background on the SEC v. Ripple Labs Case
The SEC filed suit against Ripple Labs in December 2020, claiming that its sale of XRP to institutional investors violated securities laws. In July 2023, Judge Torres issued a pivotal ruling: XRP itself was not deemed a security when sold on public exchanges, but Ripple had violated securities laws in its institutional sales.
What the Meeting Could Mean for Crypto Regulation
Though the meeting cannot alter the trajectory of the court case, it may signal a willingness for dialogue between Ripple and the SEC. Under Chair Paul Atkins, the SEC may consider a more balanced approach to blockchain innovation. However, as Fagel emphasized, legal processes remain strict and must occur through formal channels.
The meeting between Chris Larsen and Paul Atkins represents an important moment in the relationship between the crypto industry and regulators in the U.S., but it does not change the status of the Ripple court case with the SEC. The waiting for a final resolution is still in the hands of the judiciary.
