Ripple v. SEC Lawsuit: Why the Battle Remains Unresolved (Expert Insight)

TL;DR

• Legal expert James Murphy suggests the Ripple case may be prolonged due to negotiations with the SEC to vacate key rulings.

• Attorney Jeremy Hogan believes the lawsuit is too complex to be dismissed like Coinbase’s, predicting a settlement instead.

Is Ripple Negotiating for a Better Deal?

The US Securities and Exchange Commission (SEC) has changed its hostile tone toward the digital asset industry under its new leadership. Over the past several weeks, it dismissed some of its lawsuits against crypto entities, including those against Coinbase , Uniswap, and others. However, the case against Ripple remains ongoing more than four years after its start. 

One expert sharing his theory of why the legal battle has still not officially ended is James Murphy. The attorney, who uses the X moniker MetaLawMan, thinks the company might be “trying hard to get the SEC to agree to vacate some or all of Judge Torres’ decisions.” 

One of the magistrates’ rulings (from last summer) states that Ripple violated certain rules and should pay a fine of $125 million. The XRP army and the firm itself interpreted the order as a clear victory since the SEC previously insisted on a $2 billion penalty. 

Murphy also sees the decision as “great” for XRP holders but suggested that the findings that Ripple has breached some laws “is not so great” for the company’s reputation. 

“This is particularly true if Ripple is considering a future exempt securities offering or IPO. I believe the SEC would have accepted a settlement – where both sides dismiss their appeals and the SEC takes the $125 million penalty – in a heartbeat,” the expert added.

‘Ripple and the SEC Live Together and Have a Baby’

Another person who recently chipped in on the matter was the American attorney Jeremy Hogan. He opined that the case between Ripple and the securities regulator is more complicated than the rest and would most likely be resolved after a settlement rather than dismissed. 

“The SEC broke up with Coinbase after a couple dates. Ripple and the SEC live together and have a baby,” he stated. 

Eleanor Terrett (a journalist at Fox Business) agreed with the thesis. She claimed that the Ripple lawsuit is “more procedurally complex” than the one against Coinbase because Judge Torres has already ordered a $125 million penalty on the company. The journalist reminded that the magistrate can retain jurisdiction until August 7 “to make sure the terms of the order are met.”