The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has remained a focal point in the cryptocurrency industry since its initiation in December 2020.
While some recent legal victories for Ripple have fueled speculation about a potential resolution, experts suggest outright dismissing the case is unlikely.
Last week, the CEO of Coinbase, Brian Armstrong, revealed that the SEC has now agreed to drop the lawsuit against it. This caused a stir amongst the XRP community due to potential expectations that Ripple could be the next to follow the same path.
However, legal analysts have opined that the Ripple case is much more complicated and likely to be settled rather than thrown out.
Additionally, the SEC has withdrawn several high-profile cryptocurrency cases following its decision on Coinbase. These include a case against Robinhood Crypto. This pattern of withdrawals has led to further speculation regarding the SEC’s evolving approach to crypto-related enforcement actions.
Also Read: Will the SEC Drop XRP Lawsuit Like Others After Today’s Private Meeting?
Legal Complexities Differentiating Ripple from Coinbase
According to prominent attorney Jeremy Hogan, the SEC’s case against Ripple is deeply entrenched, making a straightforward dismissal unlikely. He noted that it is much more extensive than the Coinbase struggle, implying that the SEC and Ripple are locked in a protracted legal battle rather than a short conflict.
Fox Business journalist Eleanor Terrett echoed this sentiment, emphasizing that the Ripple case has already seen a ruling by Judge Analisa Torres, who imposed a $125 million penalty for violations.
She highlighted that the judge retains jurisdiction over the case until August 7, ensuring compliance with the court’s directives. Given these circumstances, the SEC must navigate multiple legal steps, including addressing the district court’s penalty ruling, before considering any potential dismissal.
Also, Terrett noticed that even if the SEC wants to take the law back to the Second Circuit, it will have to first agree on penalties and obtain the approval of Judge Torres. This procedural complexity makes it challenging to effectuate an outright dismissal.
Changes in SEC Leadership Could Impact Strategy
A former SEC official, John Reed Stark, offered another view, saying that the regulator might be slowing down on its crypto cases, including Ripple. He cited the SEC’s recent settlement with Binance and internal leadership changes as indicators that the regulator could shift its approach.
One of the notable shifts within the SEC was the movement of Jorge Tenreiro, who was previously part of the commission’s cryptocurrency litigation team. Tenreiro, who was instrumental in the lawsuit against Ripple, Coinbase, and Binance, was recently transferred to the IT division of the SEC.
Stark said it was a signal that the regulator could rethink its crypto-related legal actions strategy. While these developments suggest a potential shift in the SEC’s strategy, experts remain divided on whether this will lead to an outright dismissal of the Ripple case.
The legal proceedings remain ongoing, and a settlement appears to be the more probable outcome, given the complexities involved.
Conclusion
The Ripple-SEC case remains one of the cryptocurrency industry’s most closely watched legal battles. While the SEC’s recent actions against other firms have led to case dismissals, experts argue that Ripple’s situation is more intricate.
With a court ruling already in place and procedural complexities at play, a settlement appears to be the most realistic resolution. The next few months could provide further clarity as legal proceedings continue.
Also Read: SEC Dismisses Another High Profile Investigation, Ripple (XRP) Lawsuit Next?
