The U.S. Securities and Exchange Commission (SEC) is preparing for a potential government shutdown in December, as indicated on its website. The agency’s operations could be affected by federal budget approval delays. This has raised concerns about its capacity to meet the critical deadline in the Ripple lawsuit.
How Will SEC Shutdown Impact Ripple Lawsuit?
“In the event of a federal government shutdown due to a lapse in appropriations, the SEC’s operating status will change concurrently with the rest of the federal government,” states the latest notice. Preparations are underway to ensure the “continuing operation of certain Commission systems,” including EDGAR. The focus remains on “market integrity and investor protection components of our mission.”
President-elect Donald Trump’s rejection of a federal funding bill has intensified shutdown risks. With his inauguration set for January 20, 2025, Trump’s stance could delay crucial SEC processes. Notably, the agency faces a significant January 15 deadline in its ongoing legal battle with Ripple, a leading blockchain company. Missing this deadline might bring the nearly four-year lawsuit to an unexpected end, potentially benefiting Ripple.
INTEL: The SEC is preparing for a potential December shutdown if the federal budget isn’t approved this week. President-elect Trump rejected a funding bill, raising shutdown risks pic.twitter.com/o6LLJ65CU3
— Solid Intel 📡 (@solidintel_x) December 19, 2024
Legal experts suggest the timing could favor Ripple. A prolonged shutdown could hinder the agency’s ability to respond during the appeal phase, potentially ending the regulatory stalemate. However, the outcome remains uncertain, hinged on both budget negotiations and Trump’s decisions.
Also, experts believe that Trump will establish a pro-crypto SEC administration as he previously nominated Paul Atkins to replace Gary Gensler. This leadership shake-up could also offer a relief to not only Ripple but other crypto firms that have been a target of the American regulator’s enforcement tactics till now.
Also Read: RLUSD is Live Now on Major Exchanges: Ripple
Source: https://www.cryptonewsz.com/sec-december-shutdown-ripple-lawsuit-over/