Lawyer Predicts Impact Of Biden’s Crypto Shift
James “MetaLawMan” Murphy, the founder and chairman of law firm Murphy & McGonigle, has provided his expert analysis on how the recent policy adjustments under President Joe Biden’s administration might affect ongoing legal battles, specifically the case between Ripple Labs and the US Securities and Exchange Commission (SEC). His insights were shared in the context of a dialogue on X.
Under the leadership of SEC Chair Gary Gensler, the commission has maintained a stringent stance on cryptocurrency, prioritizing investor protection through rigorous enforcement. However, Murphy points out a potential shift in regulatory approaches influenced by the broader political environment, particularly with upcoming elections that could lead to changes in leadership within the SEC.
Can Ripple Leverage Biden’s Crypto Softening?
Murphy expressed skepticism about settling with the SEC under its current trajectory. “I wouldn’t settle any crypto case with the current SEC before seeing how the election turns out,” he advised on X. He highlighted the possible implications of a shift in leadership, noting, “Given what Trump & [Robert] Kennedy are saying, I would expect a very different SEC under open-minded leadership like Hester Peirce or similar.”
Peirce, known as ‘Crypto Mom‘, is popular in the crypto community for her dissenting opinions favoring a more progressive approach to crypto regulation. He speculated that a new SEC leadership could lead to significant changes, including “voluntary dismissals of crypto cases the Gary Gensler regime has initiated where there was no fraud and no victims.”
The Biden administration has recently shown signs of a more softening approach towards cryptocurrencies after former US President Donald Trump openly rallied his pro-Bitcoin and crypto stance. Notably, Murphy’s statement came shortly after Trump reinforced his pro-Bitcoin and crypto stance: “I will ensure that the future of crypto and Bitcoin will be made in the USA. I will support the right to self custody to the nation’s 50 million crypto holders. I will keep Elizabeth Warren and her goons away from your Bitcoin.”
In response to these political maneuvers by his competitor, Biden’s response is exemplified by the approval of a spot Ethereum ETF, a move seen as a significant forward step given the previous reluctance to approve crypto ETFs due to concerns over market volatility and investor protection.
When questioned about the potential effects of this softer stance on the Ripple case, Murphy was careful to separate judicial proceedings from administrative shifts. “The recent softening of the Biden admin’s stance on crypto should not have any effect on Judge Torres’s ruling,” he stated, emphasizing the independence of the judiciary.
However, he did acknowledge that this could affect the SEC’s stance in potential settlement negotiations, suggesting, “I guess it’s conceivable that it might impact the negotiating position of the SEC—if there are any settlement discussions.”
The discussion on X also touched on strategic considerations for Ripple. One user argued that settling might be prudent given the uncertainties of future administrations, stating, “I think it is smart for Ripple to settle if they get the opportunity. You never know who wins the next election. A devil you know is better than a devil you don’t know.” Murphy recognized the validity of this cautious approach but maintained his neutrality, saying, “I hear you. I don’t have any opinion on what Ripple should or shouldn’t do.”
At press time, XRP traded at $0.52737.
Featured image created with DALL·E, chart from TradingView.com
