As the US Securities and Exchange Commission (SEC) takes progressive steps to resolve ongoing crypto lawsuits, attention is now focused on the landmark XRP lawsuit. Though many believe that the Ripple vs SEC case settlement is imminent, legal experts like MetaLawMan warn of a possible delay in the case.
Let’s unveil the possible reasons for the US SEC’s delay in the XRP lawsuit resolution through the eyes of experts and industry leaders.
Why the US SEC is Delaying the XRP Lawsuit?
Under President Donald Trump’s administration, the SEC is taking a crypto-friendly stance to foster industry growth in the country. This shift is marked by advancements in ETFs and resolutions in lawsuits, fostering optimism among investors and industry players. Despite this positive stance, the imminent settlement of the XRP lawsuit remains uncertain, as noted by lawyer MetaLawMan.
In a recent X post, lawyer James Murphy, known on X as MetaLawMan, sounded a cautious note on the potential delay in the SEC’s settlement of the XRP lawsuit. While the SEC reportedly closed its investigation into Robinhood, speculation surrounds a potential early conclusion to the Ripple vs SEC case. However, MetaLawMan suggested that a resolution for Ripple may not be imminent, placing it behind Gemini, Kraken, and Binance in terms of potential lawsuit outcomes.
Unveiling the Complexities Surrounding Ripple vs SEC
Previously, MetaLawMan suggested that the XRP lawsuit could be settled before Ripple files its appellate brief on April 16, 2025. The lawyer’s statement rules out the possibility of a swift resolution.
Notably, the lawyer bases his assumptions on the complexities surrounding the Ripple vs SEC case. One of the key factors leading to the delay is Judge Analisa Torres’ XRP judgment and Ripple’s $125 million penalty. Reiterating his previous statements, MetaLawMan posited in his recent post,
The only reason I list Ripple last is the complexity involved in negotiating a resolution. Ripple is the only live crypto case with a final judgment in place. So, the SEC & Ripple lawyers must negotiate what to do about the judgment & the money escrowed for that judgment. That takes time.
Conflicts of Interest: A Surprising Turn
Reportedly, US government insider Empower Oversight (EO) has raised concerns over the potential conflicts of interest within the SEC. In particular, EO alleged that Bill Hinman, the former SEC Director, was biased against Ripple and XRP. This view arises from Hinman’s classification of Bitcoin and Ethereum as the only non-securities.
Significantly, the Hinman controversy revolves around his ties to the law firm Simpson Thatcher which has connections to Ethereum. EO alleged that Hinman received millions from the law firm for classifying Ethereum as a non-security.
Despite warnings, Hinman continued meeting with Simpson Thacher employees, raising concerns about conflicts of interest. If the Office of the Inspector General confirms conflicts of interest, the SEC may face increased pressure to withdraw its appeal. This could significantly be influencing the ongoing XRP lawsuit.
How Will Coinbase and Robinhood Cases Impact XRP Lawsuit?
In a surprising development, the SEC dismissed charges against Coinbase and terminated its investigation into Robinhood. Additionally, the SEC acknowledged XRP ETF applications submitted by various investment firms including Grayscale, CoinShares, Canary Capital, 21Shares, and Bitwise. This marks a significant shift from the agency’s previous “regulation by enforcement” moves.
Though the regulator’s recent moves have sparked optimism, uncertainty still surrounds the resolution of the XRP lawsuit. Lawyer Jeremy Hogan is optimistic that the Ripple lawsuit will conclude by April or May, ahead of a potential US SEC approval for an XRP ETF.
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