TL;DR
- The SEC dropped its appeal, seemingly marking the end of its lawsuit against Ripple, though certain legal matters remain unresolved.
- Lawyers debate whether Ripple should appeal its $125M fine, with some warning it could be a risky move.
Was This The End?
After more than four years of court battles, countless rulings, and developments, the lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has finally reached its conclusion. The company’s CEO, Brad Garlinghouse, announced the breaking news, stating that the agency has dropped its appeal, which means the case “has ended and it’s over.”
The disclosure triggered huge excitement across the XRP army, with many users celebrating what seemed to be a hard-fought victory. However, some legal experts cautioned that the lawsuit has technically not yet concluded.
US lawyer Jeremy Hogan, who has closely followed the case, suggested that while the “bad stuff” may be over, Ripple can prolong the battle through various avenues. Notably, the $125 million fine imposed by Judge Torres for violations of securities laws remains a significant point of discussion. According to Hogan, there are four potential paths forward from this point.
First, Hogan believes Ripple could continue its appeal regarding the penalty, seeking clarification from an appellate court on whether investment contracts require formal contracts. Alternatively, the firm could agree to drop its appeal, allowing both parties the opportunity to amend the judgment.
The third option entails the two sides reaching a mutual agreement without altering Judge Torres’ ruling. Finally, Hogan suggested that Ripple might choose to pay the substantial fine and move on.
The Appeal Seems Like an ‘Unnecessary Gamble’
Another prominent attorney, Fred Rispoli, described Ripple’s potential appeal as an “unnecessary gamble” for several reasons. Firstly, the US Court of Appeals for the Second Circuit may rule against the company, resulting in significant reputational damage. Additionally, Rispoli mentioned that potential federal legislation could ultimately negate the loss.
Lastly, he pointed out that Ripple has already asserted its operations did not engage in any of the activities previously deemed illegal. He remarked, “Maintaining it for now IS the legal ‘consideration’ that would sufficiently justify reducing the $125M penalty in exchange for dropping the appeal.”
The evolving situation reflects the complexities and uncertainties surrounding regulatory actions in the cryptocurrency space. As Ripple navigates these waters, the outcome could significantly influence the future landscape for crypto regulations and compliance within the industry.
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