The long-running legal battle between Ripple and the SEC could reach its conclusion by May 2025, according to prominent legal expert Jeremy Hogan. This prediction gains credibility following the SEC’s recent decision to drop its case against Coinbase.
Shifting Regulatory Landscape
The SEC has shown a marked shift in its approach to crypto regulation. The dismissal of the Coinbase case with prejudice signals a significant change in the Commission’s stance. This prevents the SEC from refiling similar charges against Coinbase in the future.
The regulatory environment appears more favorable now than during Gary Gensler’s tenure. The SEC has also paused its legal proceedings against Binance for 60 days, suggesting a broader pattern of regulatory de-escalation.
Market Implications
A resolution to the Ripple case could significantly impact the crypto market. XRP, Ripple’s native token, has historically shown sensitivity to legal developments. A favorable settlement could trigger renewed interest in XRP and boost market confidence in crypto assets.
Settlement Complexities
The path to settlement faces unique challenges. Unlike the Coinbase case, Ripple must address an existing $125 million penalty from Judge Torres’s ruling. Legal expert Sherrie suggests both parties might seek a penalty reduction order.
The appeal process could see both sides dropping their claims, returning to district court for penalty negotiations. This approach could expedite the resolution process.
Industry Impact
A settlement would set important precedents for the crypto industry. It could provide clearer guidelines for token classifications and influence how the SEC approaches future crypto regulations.
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Brad Garlinghouse, Ripple’s CEO, remains optimistic about the case’s resolution. He points to the SEC’s apparent willingness to move past previous enforcement policies.
Tags: Ripple, SEC, Cryptocurrency Regulation, XRP, Legal Settlement