- The SEC is delaying the XRP lawsuit settlement due to legal complexities.
- Lawyer MetaLawMan predicts a longer resolution timeline for Ripple vs SEC.
- Judge Torres’ ruling and Ripple’s $125 million penalty complicate negotiations.
The US Securities and Exchange Commission (SEC) is moving forward with resolving crypto lawsuits, but the XRP lawsuit remains uncertain. Legal experts suggest that negotiations between Ripple and the SEC may take longer than expected. The complexity of the case and regulatory concerns contribute to the delay in reaching a settlement.
Legal Expert Suggests Delay in XRP Lawsuit Settlement
Lawyer James Murphy, known as MetaLawMan, has indicated that the XRP lawsuit may not conclude soon. He noted that the case is more complicated than other ongoing crypto lawsuits involving Binance, Kraken, and Gemini. While other cases may see faster resolutions, Ripple’s situation requires extensive negotiations.
MetaLawMan previously speculated that Ripple might settle before filing its appellate brief by April 16, 2025. However, he now believes that a quick resolution is unlikely due to legal complexities. The SEC and Ripple must determine how to handle the final judgment and the escrowed funds.
The court has already ruled on certain aspects of the case, complicating settlement discussions. Judge Analisa Torres’ ruling and the imposed $125 million penalty require careful consideration in negotiations. Both parties must find common ground, which takes time.
SEC Faces Conflict of Interest Allegations
The SEC’s handling of the case has raised concerns about potential conflicts of interest within the agency. Empower Oversight, a US government watchdog, has questioned former SEC official Bill Hinman’s connections to Ethereum. Critics argue that his classification of Bitcoin and Ethereum as non-securities unfairly excluded XRP.
Reports suggest that Hinman had financial ties to the law firm Simpson Thacher, which has links to Ethereum. Allegations claim that he received significant payments from the firm while making regulatory decisions favoring Ethereum. If proven, these claims could pressure the SEC to reconsider its stance on XRP.
The Office of the Inspector General is reviewing these allegations, which could influence the ongoing lawsuit. If conflicts of interest are confirmed, the SEC may face scrutiny over its previous regulatory actions. This could impact its legal strategy and force a reevaluation of its appeal.
SEC’s Recent Crypto Policies Raise Questions
The SEC has recently softened its stance on crypto regulation, signaling a shift from strict enforcement to policy adjustments. The agency dismissed its charges against Coinbase and closed its investigation into Robinhood. These moves suggest a broader effort to ease tensions with crypto firms.
Additionally, the SEC has acknowledged applications for XRP exchange-traded funds (ETFs) from major investment firms. Companies such as Grayscale, CoinShares, and 21Shares have submitted proposals for XRP ETFs. This marks a notable change in regulatory approach, raising speculation about the lawsuit’s potential outcome.
Lawyer Jeremy Hogan believes the case could conclude by April or May 2025. He suggests that the SEC may want to resolve the XRP lawsuit before approving an ETF.