The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing a resolution.
Journalist and host of the America In Crypto podcast Eleanor Terrett recently revealed that the only hurdles left are the $125 million penalty and the permanent injunction from the court that prevents Ripple from selling tokens to institutional investors.
However, Yassin Mobarak, founder of Dizer Capital, believes that Ripple’s primary concern is the permanent injunction, as the company can easily pay the $125 million penalty. This restriction from the injunction has significant implications for Ripple’s business operations.
The SEC has spent the past few weeks dismissing other crypto-related lawsuits and investigations. Mobarak believes the lawsuit resolution is being delayed because the company is negotiating the removal of this injunction. He called on prominent legal experts in the crypto space to explain better, as he is unsure how Ripple can achieve this goal.
Legal experts have provided insight into ways Ripple might address this issue. Attorney Bill Morgan clarified that Ripple is not attempting to remove the injunction outright but is negotiating for the SEC to consent to a motion requesting the judge to vacate it. However, this outcome is not guaranteed even with the SEC’s consent.
MetaLawMan, another well-respected attorney, also recently weighed in on Ripple’s strategy, suggesting that the company might negotiate with the SEC to alter or remove parts of Judge Torres’ decision. While the ruling was favorable for XRP holders, the findings of securities law violations and the injunction created complications for Ripple.
MetaLawMan speculated that the SEC would have accepted a straightforward settlement involving both parties dismissing their appeals and Ripple paying the penalty. However, Ripple appears to be pushing for a better deal.
Attorney Jeremy Hogan also reacted to the potential resolution after Terrett’s initial report. He noted that the case could conclude soon if Ripple and the SEC reach a private settlement that does not require court approval.
However, he questioned whether the SEC would agree to a settlement that effectively bypasses the injunction. He proposed an alternative scenario where the SEC might allow Ripple a regulatory path to register sales of XRP to institutional investors.
The resolution of the Ripple lawsuit depends on whether the SEC is willing to negotiate the injunction terms. If the SEC maintains its position, Ripple’s options become limited. However, the regulator has displayed a more pro-crypto stance since the change in administration, and the final decision to vacate the injunction may lie in the hands of the court.
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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