The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) over XRP is nearing its conclusion. According to legal experts, the case could be resolved in the next few days if the two sides reach a suitable settlement. However, a major hurdle – a court injunction – could complicate the process.
What would make the case go away quickly
Legal expert Jeremy Hogan says the only way the case could end soon is if Ripple and the SEC reach a private settlement. In that case, both sides would agree to dismiss the appeal without having to bring the terms of the settlement back to the trial court for approval.
However, a key challenge is a court order against Ripple. If that is the sticking point, the SEC would need to agree not to enforce the order, which Hogan says is unlikely. Still, he hinted at a potential solution: The SEC could provide Ripple with a legal way to register its XRP sales to institutional investors. This could help Ripple achieve its goals without the SEC being seen as flouting the court order.
Ripple May Be Causing the Delay
Lawyer James Murphy suggested that the current delay could be Ripple's doing, as the company is negotiating for more favorable terms. Specifically, Ripple wants to remove parts of Judge Analisa Torres' ruling and avoid provisions that could be seen as an admission of wrongdoing.
Murphy also suggested that the SEC might have been willing to settle the case for a $125 million fine, but Ripple may be looking for a more favorable deal.
The impact of the lawsuit on the crypto industry
If a settlement is reached, it would end the years-long legal battle between the SEC and Ripple, and could set an important precedent for enforcement actions in the crypto space. Jeremy Hogan asserted that a settlement remains the most viable option to end the lawsuit in the short term.
However, given the complexity of the case and the lack of legal precedent, it is uncertain whether the negotiations will end soon or drag on. But if Ripple and the SEC reach a settlement, it could have a significant impact on future crypto regulatory policy.
