Is the Lawsuit Really Over, or Is There More to the Story?

TL;DR

• The SEC dropped its appeal, seemingly marking the end of its lawsuit against Ripple, though certain legal matters remain unresolved.

• Lawyers debate whether Ripple should appeal its $125M fine, with some warning it could be a risky move.

Was This The End?

After more than four years of court battles, countless rulings, and developments, the lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has finally reached its conclusion. The company’s CEO, Brad Garlinghouse, announced the breaking news, stating that the agency has dropped its appeal, which means the case “has ended and it’s over.” 

The disclosure triggered huge excitement across the XRP army, and many X users started celebrating the victory. However, some legal experts noted that the lawsuit has technically not yet been concluded.

The US lawyer Jeremy Hogan (who has been following the case’s development over the past few years) suggested the “bad stuff” is over, but Ripple can now prolong the battle in different ways.

He pointed out the $125 million fine that Judge Torres ordered on the company last year for violating certain securities laws. According to Hogan, there are four possible scenarios from here on.

First, he thinks Ripple can continue its appeal to the penalty and “get a ruling from an appellate court on whether investment contracts require contracts.” Second, the firm might agree to drop its appeal, and then both parties could try to amend the judgment.

The third option includes the two sides entering a mutual agreement without attempting to change Judge Torres’ ruling. Lastly, Hogan believes Ripple might decide to pay the multi-million fine “and move on.”

The Appeal Seems Like an ‘Unnecessary Gamble’

Another popular attorney who touched upon the matter was Fred Rispoli. He described Ripple’s potential appeal as an “unnecessary gamble” for three important reasons. 

First, the US Court of Appeals for the Second Circuit can rule against the company, which could cause serious reputational damage. He also believes that federal legislation “can essentially erase the loss.”

Last but not least, Rispoli claimed that Ripple has already claimed that its operations did not engage in any of the activities that were previously deemed illegal. 

“But: Maintaining it for now IS the legal “consideration” that would sufficiently justify reducing $125M penalty in exchanging for dropping appeal,” he added.