- Ripple may be delaying settlement to secure better terms for a future IPO or securities offering.
- The SEC’s withdrawal from other crypto lawsuits raises questions about the prolonged XRP case.
The crypto industry is witnessing a significant shift as the U.S. Securities and Exchange Commission [SEC], under the Trump-era leadership, moves to dismiss multiple high-profile lawsuits against major crypto firms.
This includes OpenSea, Robinhood, Uniswap [UNI], Gemini, MetaMask, and Coinbase.
With Gary Gensler no longer at the helm, regulatory scrutiny appears to be loosening.
However, one legal battle remains firmly in place—the ongoing case between the SEC and Ripple [XRP].
Ripple vs. SEC continues
Amid this uncertainty, legal expert James Murphy, widely known as MetaLawMan, has weighed in on the case, offering insights into the possible causes of the delay.
While many expected the SEC to drop its lawsuit against Ripple, Murphy suggests that the hold-up might not be coming from the regulator, but from Ripple itself.
He argues that Ripple could be strategically pushing for a stronger settlement, aiming to have certain aspects of Judge Analisa Torres’ ruling vacated.
This could potentially set a more favorable legal precedent for the company and the broader crypto industry.
He said,
“The (a) finding of securities law violations and the (b) injunction (with attendant “bad boy” provisions) are not so great for Ripple. This is particularly true if Ripple is considering a future exempt securities offering or IPO.”
Murphy added,
“I believe the SEC would have accepted a settlement—where both sides dismiss their appeals and the SEC takes the $125 million penalty—in a heartbeat.”
What is Murphy trying to indicate?
As expected, MetaLawMan, suggested that Ripple might be strategically delaying a settlement.
He speculated that the company could be negotiating more favorable terms, particularly if it has plans for a future exempt securities offering or an Initial Public Offering (IPO).
If true, this would explain why Ripple has yet to reach a resolution, despite the SEC’s recent willingness to drop other high-profile crypto lawsuits.
Murphy further argued that the SEC would likely have accepted a straightforward settlement in which both parties withdrew their appeals, and Ripple paid the proposed $125 million penalty.
However, the fact that no such agreement has been reached suggests that Ripple may be pushing for better terms, possibly seeking to have certain legal rulings vacated.
Its impact
This move would not only benefit Ripple but could also set a precedent that influences future regulatory decisions in the crypto space.
Despite the complexities surrounding the case, MetaLawMan remains confident that a resolution will arrive soon.
He previously predicted that the lawsuit could take longer to settle than other crypto cases due to the intricacies of the negotiations.
However, with Ripple’s deadline to file its appeal brief approaching on the 16th of April, he believes the case will likely conclude before then.
Until an official settlement is announced, the crypto community will continue to watch closely, eager to see how the outcome shapes the industry’s regulatory landscape.
