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Legal analysts continue to scrutinize the ongoing dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple, as speculation grows regarding a potential settlement. Recent decisions by the SEC to drop several high-profile cryptocurrency cases have heightened expectations for resolution, yet delays persist.
James Murphy, a legal expert known for his insights into cryptocurrency regulation, has suggested that the holdup may stem from Ripple rather than the SEC. He posits that Ripple could be negotiating aggressively to have certain aspects of Judge Analisa Torres’ ruling vacated before agreeing to a settlement. While the decision was largely seen as a victory for XRP holders, it also included findings of securities law violations and an injunction that may be unfavorable for Ripple, potentially motivating the firm to seek revisions.
Conversely, another legal expert, Fred Rispoli, argues that the SEC is responsible for the delay, pointing to internal reluctance to modify the $125 million penalty imposed on Ripple. Meanwhile, attorney Jeremy Hogan has expressed skepticism regarding an expedited resolution, predicting that the case may not conclude before mid-March due to its complexity.
Following the SEC’s decision to pause its case against a prominent blockchain founder, speculation has intensified regarding the trajectory of the Ripple litigation. Murphy has suggested that Ripple may be positioning itself for a future exempt securities offering or even an initial public offering (IPO), which could be influencing its legal strategy. He asserts that if Ripple were willing to settle unconditionally by withdrawing appeals and paying the penalty, the SEC would likely have already accepted such terms—indicating that the company may be pushing for a more favorable outcome.
Regulatory Scrutiny and the SEC’s Evolving Approach
The SEC has recently undertaken significant shifts in its approach to cryptocurrency enforcement, closing multiple longstanding cases. Under its restructured leadership, actions involving major digital asset platforms have been resolved, and the agency has also paused its civil fraud case against another high-profile blockchain figure.
Despite growing expectations for a resolution in the Ripple case, legal experts caution that several obstacles remain. Judge Torres’ prior rulings and the substantial financial penalty imposed on Ripple continue to complicate settlement discussions.
Former SEC officials have also voiced concerns regarding the agency’s evolving regulatory stance, with some interpreting the recent enforcement decisions as an institutional weakening rather than a strategic recalibration. As the litigation progresses, industry stakeholders remain watchful for any definitive resolution.
