Ripple and SEC Lawsuit Expected to Drag out Now

All indicators point to an extended lawsuit for Ripple since the Securities and Exchange Commission (SEC) filed an appeal with presiding Judge Torres.

Now, the lawsuit that has already dragged on for four years is likely to last even longer. When it looked like the lawsuit may be coming to a close after Judge Torres ruled that Ripple owed only $125 million to the SEC rather than $2 billion, the SEC filed an appeal on a previous decision.

That appeal needs to be addressed, and the case cannot be resolved until it is. The appeal was filed just last week. A decision has not been made on the appeal, which requests that the judge’s previous ruling on the XRP crypto coin as a security be overturned.

How Long Might the Case Extend?

Previous estimates had placed the end of the case late in 2024, but that does not seem possible now. New estimates anticipate a wrap-up in 2025 or even 2026.

The expectations for a far off end date comes from the new appeal, partly. It also stems from the fact that both sides refuse to give in and keep extending the case further. That makes it difficult for the case to reach its resolution.

Will Ripple Settle?

It might make sense for Ripple to just let the case come to a close and ask to settle with the SEC. However, that appears to be unlikely given what we know about the case. The appeal will make it very difficult for any kind of settlement to happen. The SEC may refuse any offer from Ripple for settlement and may not be satisfied until they get the full $2 billion in fines that they initially requested.

Ripple is likely to be unwilling to pay that and would probably ask for a reduced fine total. All indicators point to the SEC being unwilling to acquiesce to that kind of request. What we are seeing is that the SEC is looking to make an example of Ripple and XRP. If that is really what is happening, then Ripple may not get off easily at all and may not be able to settle. 

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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