Pro-XRP Lawyer Reveals Why SEC Dropped Its Appeal Despite Ripple’s Active Cross-Appeal

With the U.S. Securities and Exchange Commission (SEC) retracting its appeal in the ongoing legal battle with Ripple, speculation is growing about the motivations behind this sudden shift. Attorney Fred Rispoli, a well-known pro-XRP legal figure and founder of Hodl Law, has weighed in on the possible strategic considerations influencing the case.

The crypto community is buzzing about this development, although the SEC has not officially confirmed it. Crypto journalist Eleanor Terrett expects an official statement after the SEC’s next private meeting.

Ripple Stands Firm as SEC Steps Back

While the SEC has decided to withdraw its appeal, Ripple has made no such concession. This discrepancy has led Attorney Rispoli to theorize that the SEC’s decision might be a calculated move to initiate settlement discussions.

The settlement talks are likely centered on Ripple’s institutional sales of XRP, which a court ruling previously categorized as securities transactions. As part of that ruling, Judge Analisa Torres imposed a $125 million penalty on Ripple and issued a permanent injunction preventing further institutional sales.

Is a Settlement in the Works?

Given these circumstances, Rispoli suggests that the SEC might be willing to find common ground. In exchange for Ripple dropping its cross-appeal, the SEC could offer to reduce the fine or reconsider the injunction on institutional XRP sales.

Should such an agreement materialize, Ripple would no longer be bound by the lawsuit’s legal restrictions. This could have significant implications for Ripple’s future, particularly regarding the company’s ability to raise capital and pursue an initial public offering (IPO).

There has long been speculation that Ripple intends to go public in the United States. However, the SEC lawsuit has been considered a significant roadblock to any IPO plans. According to Rispoli, a settlement could eliminate that obstacle and clear the path for Ripple’s public market debut.

Ripple’s Hardline Stance: Drop Everything

Despite these potential negotiations, Ripple’s leadership appears unwilling to accept a partial settlement. CEO Brad Garlinghouse has clarified that the company is pushing for the SEC to withdraw all claims entirely—not just lower the fine.

Garlinghouse also hinted that the SEC’s current leadership acknowledges the lawsuit should never have been filed. This stance strengthens Ripple’s argument that it should not face penalties for a case that regulators now seem to regret pursuing.

What Lies Ahead?

With the SEC withdrawing from its appeal, all eyes are now on Ripple’s next move. Will the company negotiate a reduced penalty or continue pushing for the dismissal of the remaining penalties?

As the legal battle nears its conclusion, the outcome could reshape the regulatory landscape for cryptocurrencies in the U.S. and influence how other blockchain firms approach compliance and litigation.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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