Attorney Fred Rispoli shares his thoughts on what could be happening behind the scenes in the Ripple lawsuit, especially now that the SEC has dropped its appeal.
It is no longer news that the Ripple lawsuit saw a major development this week, resulting in the SEC dropping its cross-appeal.
Although the regulator has not issued an official statement confirming the decision, pro-crypto journalist Eleanor Terrett expects this to happen after the SEC closed-door meeting next week.
Why SEC Dropped Its Appeal Despite Ripple’s Active Cross-Appeal
Despite the SEC agreeing to drop its appeal, Ripple has not made a similar decision, prompting Attorney Rispoli, the founder of Hodl Law, to suggest what could be happening behind the scenes.
WHY THE SEC DROPPED THE APPEAL AGAINST RIPPLE XRP!
Attorney Fred Rispoli shares his thoughts on why the SEC dropped it’s appeal in the Ripple XRP lawsuit and what it means for the fine, institutional sales, and potential Ripple IPO.
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First, the pro-XRP legal expert emphasized that the SEC’s decision to drop its appeal aligns with its recent actions in other crypto-related lawsuits.
With the SEC dropping its appeal despite Ripple still keeping its cross-appeal active, Attorney Rispoli suggested that the move could be the regulator’s way of negotiating a settlement. This settlement revolves around Ripple’s XRP sales to institutional clients, which were found to be securities.
Following this decision, Judge Analisa Torres ordered Ripple to pay a fine of $125 million and granted the SEC’s request for a permanent injunction on XRP institutional sales.
Potential Settlement Negotiations
Given the current circumstances of the lawsuit, Attorney Rispoli speculated that the settlement negotiations could see the SEC ask Ripple to drop its cross-appeal for a reduced fine.
He also noted that this agreement might also involve dropping the permanent injunction Judge Torres imposed on Ripple’s institutional sales.
If the parties reach such an agreement, Ripple will not be subject to the lawsuit’s legal constraints. According to Rispoli, this decision will allow Ripple to raise funds and file with the U.S. SEC for an IPO.
There have been debates about Ripple going public in the United States through an IPO. However, many have highlighted the SEC lawsuit as a potential factor that could hinder Ripple’s IPO chances.
Notably, if the parties reach an agreement, as stated by Rispoli, it could pave the way for the highly anticipated IPO.
Ripple Wants SEC to Drop Everything
In the meantime, Ripple does not seem interested in accepting the terms of a reduced fine. The company, through its CEO Brad Garlinghouse, noted that it is negotiating to have the SEC ‘drop everything.’ This includes the permanent injunction and $125 million fine.
Garlinghouse noted that the current SEC leadership agrees with the company that it should not have filed the lawsuit in the first place. Hence, Ripple believes it is not ideal to be penalized based on the court’s findings and order.
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