The long-standing battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has left many wondering why the case hasn’t been resolved yet. Despite a partial ruling in July 2023 and subsequent appeals, there’s no final settlement. According to news sources, Legal expert James Murphy, aka Metalawman, thinks the delay might not be all on the SEC’s side. Instead, Ripple might be pushing for a better outcome that impacts its long-term regulatory status.
Murphy’s Legal Theory: Ripple’s Play?
Following expert insights, On March 1, Murphy posted on X to share his thoughts on the SEC’s delay. He thinks Ripple might be negotiating to vacate certain parts of Judge Analisa Torres’ decision.
“The Torres decision was great for XRP holders,” Murphy said, “but (a) finding of securities law violations and (b) injunction (with attendant ‘bad boy’ provisions) are not so great for Ripple.”
This could be a big deal for Ripple, especially if they plan an IPO or future exempt offerings. By vacating parts of the ruling, Ripple could get a clean slate going forward.
Legal Timeline
– December 2020: SEC sues Ripple, alleging XRP is an unregistered security.
– July 2023: Judge Torres rules XRP is not a security in retail sales but is in institutional sales.
– August 2024: Ripple fined $125 million, much less than the SEC’s $2 billion demand.
– October 2024: SEC appeals certain parts of the ruling, seeking clarity on securities laws.
– March 2025: Case is still open, both sides still negotiating terms.
Would the SEC Settle?
Murphy thinks the SEC would have settled if Ripple had dropped the appeal and taken the $125 million fine.
“They would have settled in a heartbeat,” he said.
That would mean Ripple could end the legal uncertainty but still be under the constraints of the original ruling.
However, Ripple not settling outright suggests they have a bigger picture play. If Ripple can get the bad regulatory language removed they can set a precedent for other crypto companies in similar lawsuits.
Vacating a Federal Ruling
Ripple is waving off past statements, but Murphy has pointed out the difficulty in vacating a federal judge’s ruling. Historically, settlements may involve withdrawing unfavorable language; but judicial attitudes have changed; today, federal judges err on the side of making prior judgments where possible, given their broader effects on regulatory clarity and market stability.
Even an agreement on terms between Ripple and the SEC would still require a judge to approve the vacatur request, adding an additional layer of complexity to an already very complicated case.
Implications for XRP and the Crypto Market
The delay affects both Ripple and the broader cryptocurrency market. Here’s how:
| Stakeholder | Potential Impact |
|---|---|
| XRP Holders | More uncertainty on legal status and market performance. |
| Crypto Exchanges | More caution on listing XRP in certain jurisdictions. |
| Institutional Investors | More legal risk in dealing with XRP and similar assets. |
Future Outlook: What’s Next?
Advertisement Banner
Negotiations are ongoing so we’ll have to wait and see if Ripple gets a better deal or if the SEC holds firm on parts of the ruling. If Ripple wins, it will redefine the regulatory landscape for other crypto companies. If not, this will be a warning to projects at the intersection of blockchain and securities law.
As Murphy himself said, “This is all pure speculation on my part. I could be wrong. Wouldn’t be the first time.” But his comments give us a glimpse into what’s going on behind closed doors.
The BIT Journal is available around the clock, providing you with updated information about the state of the crypto world. Follow us on Twitter and LinkedIn, and join our Telegram channel.
FAQs
1. Why is the SEC delaying the Ripple case?
It’s not just the SEC. Legal expert James Murphy thinks Ripple is negotiating to vacate parts of the ruling that would impact their business operations.
2. What did Judge Torres rule in 2023?
Judge Torres ruled XRP is not a security when sold to retail but is a security when sold to institutions.
3. What if Ripple vacates the ruling?
If they succeed, they can remove certain regulatory hurdles and make it easier to do future securities offerings or an IPO.
4. Can the SEC still appeal?
Yes, the SEC has already appealed parts of the ruling and more lawyers will be involved so the case will drag on.
5. How does this impact other cryptocurrencies?
The outcome will set a precedent for other crypto assets and ongoing/future lawsuits in the space.
Glossary
Vacatur: Annulment or cancellation of a court ruling.
Institutional Sales: Sales of securities to accredited or institutional investors not the general public.
Retail Transactions: Sales to consumers or individual investors.
Exempt Securities Offering: A sale of ‘securities that doesn’t require SEC registration due to exemptions.
Initial Public Offering (IPO): A private ‘company offering shares to the public for the first time.
References
Judge Torres’ 2023 ruling on XRP
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
For advertising inquiries, please email . [email protected] or Telegram
