- Ripple’s future hinges on SEC’s vote to dismiss the appeal.
- SEC’s decision could free Ripple, reshaping crypto regulations forever.
- The final twist: Will the SEC vote to end its appeal battle?
The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its final stages, but one crucial twist could change everything. While Ripple has already taken decisive steps toward resolving the case, the real turning point hinges on whether the SEC commissioners will vote to dismiss the appeal.
Ripple has made significant progress, demonstrating its commitment to closing this chapter. On June 27, the company agreed to withdraw its appeal concerning the court’s previous ruling on XRP’s institutional sales and deposited a $125 million civil penalty into escrow.
These actions signify Ripple’s willingness to move forward and finalize the settlement. Despite these steps, the case remains unresolved as the SEC still holds the key to its conclusion.
Also Read: Ripple CLO Writes Open Letter to U.S. Senate Banking Committee on Request for Information
The SEC’s Critical Decision
Bill Morgan, a legal expert closely following the case, clarified that the real hurdle is the SEC’s formal decision to dismiss its appeal. Ripple already proclaimed that it would drop its appeal, although the SEC commissioners will have to vote to drop theirs.
The two sides had previously signed a conditional settlement agreement, which provided for the dismissal of their appeals. Nonetheless, some conditions were not met, leaving the situation in limbo.
Consequently, the next major milestone will be on August 15, when Ripple and the SEC are supposed to submit a joint status report to the court. Although it is not a legally binding deadline, it will give insight into the SEC’s intentions and might lead to the end of the case.
What Happens If the SEC Votes to Dismiss the Appeal?
If the SEC votes to dismiss its appeal, the outcome could be a game-changer for Ripple. The company would regain the freedom to continue its operations with institutional XRP sales without the weight of legal uncertainty.
Also, the escrowed fine of $125 million would be discharged to the U.S. Treasury, and more than 1,700 confidential contracts concerning Ripple could subsequently be disclosed. The ruling would also have critical law-making precedence, including a possible transformation of the crypto regulation axis in the nation.
For now, the fate of the case rests in the hands of the SEC commissioners. Voting to reject their appeal would end one of the most publicly covered legal cases in the cryptocurrency space, allowing Ripple to move past it.
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