Ripple Vs. SEC: Lawyer Explains Delayed Case Resolution

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Crypto Chaos: Why Ripple‘s Legal Drama is the New Soap Opera! 🎭💰

In a most curious turn of events, following a veritable avalanche of dropped investigations against the crĂšme de la crĂšme of crypto companies, the legal eagles have taken to their perches to ponder what this might mean for Ripple Labs and its long-standing tĂȘte-Ă -tĂȘte with the US Securities and Exchange Commission (SEC). One can almost hear the popcorn popping! 🍿

On a rather mundane Monday, Robinhood, that plucky little trading platform, confirmed it had received a missive from the SEC announcing the closure of its investigation into its crypto escapades—a probe that originally stemmed from a Wells Notice, which sounds rather ominous, doesn’t it? This little drama began back in May 2024. Meanwhile, Coinbase’s Chief Executive, the ever-enthusiastic Brian Armstrong, revealed last week that a similar SEC investigation into his exchange had been unceremoniously terminated. And let’s not forget the NFT marketplace OpenSea, which also saw its own SEC probe dismissed faster than you can say “blockchain.”

These terminations are part of a growing trend, as the SEC appears to be systematically closing or dismissing legal actions against crypto-focused entities. It’s a stark departure from the more combative approach of the former SEC Chair, Gary Gensler, who, one might say, had a flair for the dramatic. Notably, Gensler resigned on January 20, 2025, coincidentally the same day Donald Trump was inaugurated as President of the United States. Coincidence? I think not! Under the interim stewardship of Mark Uyeda, the agency has assembled a specialized crypto task force overseen by the ever-diligent Commissioner Hester Peirce, all in a bid to clarify the murky waters of digital asset regulations.

What Is Delaying The Ripple Vs. SEC Case Resolution?

Enter James “MetaLawMan” Murphy of Ludlow Street Advisors, LLC, who took to the social media platform X (formerly known as Twitter, but who’s counting?) to highlight the significance of these recent SEC moves: “SEC closes investigation of Robinhood crypto business after previously issuing Wells Notice. The post-Gensler SEC appears to finally recognize that most crypto tokens are not securities. We should see dismissals of cases against Gemini, Kraken, Binance, Ripple & others.” Quite the revelation, wouldn’t you say? 🧐

However, our dear Murphy also pointed out that the Ripple case might take a tad longer to resolve compared to its more fortunate counterparts. “The only reason I list Ripple last is the complexity involved in negotiating a resolution. Ripple is the only live crypto case with a final judgment in place. So, the SEC & Ripple lawyers must negotiate what to do about the judgment & the money escrowed for that judgment. That takes time,” Murphy stated, presumably while sipping a cup of tea and pondering the mysteries of the universe.

Meanwhile, pro-XRP attorney Jeremy Hogan recently chimed in on the rapid shifts in the SEC’s stance, predicting that the SEC could drop the Ripple case even more once the new SEC chair, Paul Atkins, is sworn into office. “The Coinbase Case was Dismissed WITH Prejudice – meaning it cannot be refiled later; not even a settlement agreement with some minor concessions! I guess this SEC is not waiting for Atkins to be confirmed before making big crypto moves. Ripple [is waiting in line],” Hogan quipped, likely with a twinkle in his eye.

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2025-02-25 22:12