Ripple-SEC Lawsuit: $125M Judgment May Stand
The Ripple vs. SEC lawsuit's outcome remains uncertain, with some legal experts predicting the $125 million judgment against Ripple may stand. Attorney Fred Rispoli suggests the Securities and Exchange Commission (SEC) might delay a final decision until new leadership takes office.
Ripple-SEC Lawsuit: Potential Outcomes
While the SEC, currently under Acting Chair Mark Uyeda, has withdrawn other crypto-related lawsuits, the Ripple case persists. Rispoli believes the SEC is awaiting the appointment of Paul Atkins as Chair before making further decisions. He argues that dropping the appeal while maintaining the fine avoids protracted legal battles and saves the SEC resources. Rispoli noted on X (formerly Twitter): “The best satisfaction of this, if true, is that it nullifies the thousands of hours of work put in by SEC staff to get the $125M judgment.”
Speculation Surrounding XRP
Speculation abounds regarding Ripple potentially settling the $125 million fine by transferring XRP instead of cash. Analyst Vincent Van Code suggests this XRP could be allocated to a government-controlled cryptocurrency reserve. However, attorney Rispoli expresses doubt about this scenario given the slow pace of legal proceedings. The immense XRP holdings in Ripple's escrow (approximately 37.1 billion XRP) are central to these discussions, further fueled by President Trump's (at the time) confirmation that XRP would be part of the country’s digital asset reserve.
Ongoing Legal Challenges for Ripple
A key issue is Judge Analisa Torres' 2023 ruling classifying Ripple’s institutional XRP sales as securities transactions. Ripple is actively challenging the injunction restricting certain XRP sales. Attorney Jeremy Hogan indicates Ripple may be appealing this ruling to the Second Circuit Court of Appeals. This ongoing legal battle could be why the SEC hasn't dropped the case. Meanwhile, Ripple CTO David Schwartz has emphasized that XRP's total supply is fixed by its code, dispelling concerns about inflation.
Codeum's blockchain expertise can help navigate the complexities of the crypto regulatory landscape. Our services include smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies. Contact us to learn how we can assist your project.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Market conditions are volatile, and thorough research is recommended before investing in cryptocurrencies. Codeum is not responsible for any personal financial losses.