The long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may move closer to resolution by spring 2025. Legal expert Jeremy Hogan predicts the case could be settled between April and May this year.
The case concerns whether Ripple’s XRP token qualifies as an unregistered security under U.S. law. The conflict has resulted in considerable legal actions, and both have seen a semblance of victory and losses.
The court decided that Ripple sold more than $700 million of XRP through institutional sales, violating the securities laws. Hence, Ripple was hit with a $125 million penalty, yet this penalty is temporarily suspended due to appeals from both parties.
Leadership Changes Could Influence SEC Strategy
The upcoming transition in SEC leadership is expected to play a pivotal role in the case’s direction. Paul Atkins, a former SEC commissioner with a history of advocating for balanced regulation, is set to replace Gensler on January 20, 2025.
Experts believe Atkins’ leadership could foster a more collaborative dispute resolution. Ripple CEO Brad Garlinghouse has expressed optimism about working with the new administration, hoping for clearer regulatory guidance and potential closure of the lawsuit.
Of particular interest, the appeals involve document submissions, setting up tactics, and negotiations, all of which Hogan opines make it reasonable to expect the goal to be reviewed and sorted in April or May at the latest.
"I'd say it's possible but maybe unlikely. 40 days is not a lot of time to get reports together, memos, have the requisite SEC meetings, etc.. I'm going with April/May as a likely timeframe," Hogan says.
This post first appeared on 36crypto.com News.