- Ripple seeks resolution with SEC on XRP lawsuit.
- Judge’s decision could come anytime.
- XRP market performance hinges on legal outcome.
Ripple Labs and the SEC are awaiting a ruling from Judge Analisa Torres on their joint motion to settle the longstanding lawsuit concerning XRP.
The decision is pivotal for finalizing Ripple’s and the SEC’s contentious legal journey and could remove significant uncertainty for XRP.
The multi-year legal conflict initiated by the SEC’s lawsuit in 2020 against Ripple, alleging unauthorized sales of XRP, approaches a potential resolution as the involved parties pursue a joint settlement. Ripple proposes modifications to penalties by reclaiming $75 million while conceding $50 million to the SEC to end current appeals.
If Judge Torres approves the arrangement, it could cement a reduced financial burden on Ripple and validate aspects of Ripple’s argument that XRP sales aren’t securities. This resolution might influence XRP’s market favorably by dissipating legal uncertainty. However, failure to terminate appeals could lead Ripple to further legal challenges.
Marc Fagel, a former SEC lawyer, emphasizes the unprecedented legal context involving the SEC’s change under a new administration, which impacts regulatory dynamics in crypto oversight. “I can’t predict how the judge will rule. This is unprecedented–possibly the first time the SEC has changed administrations and sought to undo a court victory–and the court could go either way,” said Marc Fagel.
The ruling will be significant in shaping how crypto assets may be evaluated under U.S. securities laws, offering potential templates for future blockchain-related cases.
