The XRP lawsuit between the SEC and Ripple might be nearing its end. According to sources, a settlement is on the horizon, though Ripple’s legal team is working to get better terms following a court ruling that fined them $125 million and restricted their XRP sales to institutional investors. The delay stems from Ripple pushing back, arguing that if the SEC’s new leadership wants to drop past cases against crypto firms, they shouldn’t be held to an outdated ruling.
A Lawyer’s Proposed Solution
XRP attorney Fred Rispoli believes a resolution is surprisingly simple if the SEC is willing to cooperate. He sees two main ways to resolve the issue:
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Vacating the Judgment: Both the SEC and Ripple could file a motion to vacate (cancel) the judge’s order. Rispoli suggests the SEC might agree to this in exchange for Ripple dropping its appeal, avoiding a potential loss of jurisdiction over crypto cases.
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A Non-Enforcement Agreement: Even without vacating the order, the SEC could agree not to enforce it. This would require a written agreement between the two parties. Rispoli points out that the SEC’s own guidelines encourage settlements, and they have broad discretion in how they enforce rules. He acknowledges that this isn’t ideal, but believes the SEC often does what it wants regardless of strict legal procedures.
Concerns and Precedents
While Rispoli is optimistic, some worry about the future. What if a stricter SEC administration tries to enforce the ruling later? Rispoli counters that a new agreement between Ripple and the SEC would negate this possibility. If that scenario plays out, the consequences for the crypto industry would be far-reaching, impacting far more than just Ripple.
Another concern is whether the SEC can override a court’s decision. Rispoli argues they can, citing a precedent, SEC v. Citigroup Global Markets, Inc.
, where an appeals court overturned a district court’s refusal to approve an SEC settlement. This highlights that courts generally respect settlements reached between the SEC and the companies they’re investigating.
At the time of writing, XRP was trading at $2.21.