Ripple’s Legal Tango: Why the SEC and Ripple Can’t Seem to Settle Down

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In the grand theater of cryptocurrency, where fortunes are made and lost faster than one can say “blockchain,” our legal sage, James Murphy—known in the digital realm as MetaLawMan—has graced us with his musings on the XRP lawsuit. It appears that the US Securities and Exchange Commission (SEC) and Ripple are engaged in a rather prolonged game of legal chess, much to the chagrin of the crypto community, who are eagerly awaiting a resolution. After all, the SEC has already tossed aside several high-profile crypto cases like yesterday’s newspaper.

XRP Lawsuit: Why The SEC and Ripple May Have Yet To Settle

In a recent post on X, our dear MetaLawMan shared his theory regarding the SEC’s “mysterious” delay in dismissing the Ripple case. He suggests that perhaps it is not the SEC dragging its feet, but rather Ripple, who might be negotiating with the fervor of a desperate suitor trying to win back a lost love—specifically, the vacating of Judge Analisa Torres’ decision.

Our legal oracle further noted that while the Torres decision is “unquestionably” a boon for XRP holders, the court’s findings of securities law violations and the accompanying injunction are akin to a rain cloud over Ripple’s picnic. This could very well explain why Ripple is pulling out all the stops to persuade the SEC to reconsider Torres’ ruling.

Meanwhile, lawyer Fred Rispoli has also weighed in on this legal delay. Unlike our friend MetaLawMan, Rispoli posits that the SEC is the one playing hard to get, as he suspects that acting Chair Mark Uyeda and Commissioner Hester Peirce are reluctant to shoulder the blame for altering the hefty $125 million penalty against Ripple. Ah, the joys of bureaucratic indecision!

Ripple May Be Negotiating Hard Because Of An IPO

MetaLawMan further speculated that the delay in settling the XRP lawsuit could be linked to Ripple’s ambitions of a future exempt securities offering or an Initial Public Offering (IPO). One can only imagine the negotiations—perhaps they involve a lot of back-and-forth, a few dramatic pauses, and maybe even a PowerPoint presentation or two.

He believes that had Ripple simply agreed to pay the $125 million penalty and both parties withdrawn their appeals, the SEC would have jumped at the chance to settle. This leads him to conclude that Ripple is the one stalling, not the Commission, as they might be angling for a sweeter deal. After all, who wouldn’t want to negotiate for a better outcome?

Our legal sage had previously predicted that the SEC Ripple case could take longer to resolve than other crypto cases, given the intricate dance of negotiations involved. He pointed out that this case is the only live crypto case with a final judgment in place. However, he remains optimistic, predicting that the curtain will fall on this legal drama before April 16, the deadline for Ripple to file its brief in the appeal. Let us hope the audience is not left waiting too long!

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2025-03-02 01:04