TL;DR
- Ripple’s lawsuit with the SEC remains ongoing, with speculation that the company might be waiting for Paul Atkins to take over as Chairman of the agency to potentially drop or reduce the $125 million penalty.
- Prior to the SEC’s appeal, the firm was ready to pay the fine.
Is Ripple Waiting for This?
The US Securities and Exchange Commission (SEC) has changed its approach toward the cryptocurrency industry significantly since the departure of former Chairman Gary Gensler. It has dismissed or paused numerous lawsuits against crypto entities, including Binance, Coinbase, Kraken, and Uniswap. However, Ripple’s case with the SEC remains a notable exception.
Recently, attorney Fred Rispoli introduced a theory regarding the legal battle, suggesting there is a plausible scenario in which the pro-crypto Commission might decide to drop the appeal while keeping the $125 million judgment in place.
The multi-million penalty stems from Judge Torres’s ruling last summer, in which she ordered Ripple to pay for violating specific regulations. Initially, the company was prepared to settle the fine, but the SEC filed a last-minute appeal, thereby prolonging the lawsuit indefinitely. This reaction was anticipated, especially since the fine represents a fraction of the $2 billion the SEC initially sought.
Rispoli posited that Ripple might be awaiting the arrival of Paul Atkins, nominated by President Donald Trump to lead the SEC, to potentially scale back or eliminate the penalty. As of now, Mark Uyeda heads the agency and has demonstrated support for the cryptocurrency sector.
In recent discussions, some have speculated that instead of paying the $125 million penalty, Ripple might use an equivalent amount in XRP to support the strategic crypto reserve recently announced by Trump. Rispoli expressed skepticism about this possibility, stating that while it could be feasible, the current trajectory suggests otherwise.
Other Opinions
James Murphy, an American attorney, has noted that the unresolved nature of the case may be attributed to Ripple’s efforts to persuade the SEC to vacate some or all aspects of Judge Torres’s ruling. He acknowledged that while the $125 million penalty is beneficial for XRP holders, the findings of legal breaches could adversely affect Ripple’s reputation.
Contrarily, former White House official Anthony Scaramucci believes that the lawsuit is effectively concluded. In a recent interview, he likened Ripple’s case to those lawsuits that the SEC has recently dropped, a sentiment echoed by Scott Melker, known as The Wolf of All Streets.
As the situation develops, stakeholders in the cryptocurrency market remain attentive to the potential outcomes of Ripple’s ongoing legal battle with the SEC, recognizing its implications not just for Ripple but the broader landscape of cryptocurrency regulation.
