XRP Lawsuit: Lawyers Predict Ripple and SEC Will Drop Appeal

Gate News bot news, according to CoinGape, lawyers say that Ripple and the SEC may abandon their appeal, settling for $50 million and upholding Judge Torres' ruling.

Judge Analisa Torres has denied the joint motion filed by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, which sought a declaratory judgment on the lawsuit regarding Ripple (XRP). The request included lifting the permanent injunction and reducing the previously agreed-upon fines. This move has resulted in a pause in the anticipated legal resolution of the Ripple (XRP) case.

Lawyer James Filan confirmed the ruling via social media, stating that Judge Torres dismissed both parts of the joint motion. The court's ruling means that both parties must now decide whether to continue the appeal or abandon it altogether. The legal process is now back at the appellate stage, and there will be no further changes unless new actions are taken.

Ripple's Chief Legal Officer Stuart Alderoty acknowledged the ruling and stated, "Now, the ball is back in our court." He added that Ripple must either continue to appeal or drop the appeal. Alderoty also noted that the ruling does not change the legal status of XRP as "non-security."

Legal expert Fred Rispoli, who frequently comments on the case, believes that both parties may abandon the appeal. He stated that the final agreement might include a settlement amount of nearly $50 million, maintaining the existing ruling of Judge Torres. Rispoli added that the operations of Ripple might remain transparent and continue to comply with the acceptance criteria of the U.S. Securities and Exchange Commission (SEC) under the current regulatory conditions. He stated, "The SEC will inform Ripple, either publicly or privately, that its business operations are not restricted."

This means that the SEC has informally planned the direction for future development. He also believes that as long as Ripple complies with current standards, the SEC is unlikely to take enforcement action in the future. The court's injunction is expected to remain in effect, but it will only have enforceability when the U.S. Securities and Exchange Commission chooses to take action. Rispo explained that unless one party requests it, the court usually does not oversee compliance, so further litigation is unlikely unless there is a violation.

Risvoli believes that part of the reason Judge Torres made this ruling may be dissatisfaction with the duration and tone of the XRP lawsuit, which has lasted for more than four years. She pointed out that judges sometimes consider the broader political atmosphere or institutional behavior when making rulings. Although Risvoli did not directly accuse Judge Torres of political motives, she mentioned that the firm wording in Judge Torres's ruling might indicate dissatisfaction from both sides regarding the handling of the case.

He also criticized the way the SEC handled such cases during the previous administration and cited examples of SEC lawyers being sanctioned, such as the "Debt Box" case. He stated that the SEC could have included a statement from the commissioners denying previous enforcement actions, but they chose not to do so.

Subsequently, Risvoli shared the latest timeline, noting that the status report will be submitted to the Second Circuit Court in August. He stated that the case will either continue until 2026 or ultimately reach a settlement. "The parties informed the appellate court that they have settled and are seeking to dismiss the appeal," he wrote. Therefore, according to the lawyers, the outcome of the XRP lawsuit may be announced by the end of July or early August this year.