Ripple CEO Brad Garlinghouse announced yesterday that the US Securities and Exchange Commission (SEC) will drop its appeal against the corporate within the XRP lawsuit. Nevertheless, the lawsuit’s ultimate conclusion stays uncertain, as the subsequent move largely hinges on Ripple’s decision to either proceed or withdraw its own appeal.
What’s Next in The XRP Lawsuit?
Lawyer Jeremy Hogan took to X to make clear the ramifications, noting: “The SEC has apparently dropped its appeal, but we don’t know if Ripple agreed to the identical.”
Hogan explained that Judge Analisa Torres’s ruling stands as the utmost negative consequence Ripple currently faces—namely a $125 million penalty plus an injunction. Unless Ripple continues its appeal, that judgment appears to be the baseline.
Hogan then laid out 4 potential scenarios: First, Ripple can proceed its appeal, resulting in a ruling from an appellate court on whether “investment contracts” require formal contracts. Second, Ripple can opt to drop its appeal and jurisdiction returns to the trial court, where each parties could try to amend the judgment.
Third, Ripple could drop its appeal and each parties enter into a personal agreement without modifying the judgment. Lastly, Ripple could simply pay the $125 million and moves on. Summarizing the situation, Hogan remarked: “There are 4 possibilities left… That’s all folks!”
One other pro-XRP attorney, Fred Rispoli, also shared his perspective via X, expressing surprise that the SEC didn’t condition the dropping of its appeal on Ripple doing the identical: “Wow! I cannot consider the SEC didn’t tie dropping its appeal to Ripple also dropping its appeal. Best explanation is that the agreement has already been made for Ripple to drop its appeal in exchange for a significantly reduced advantageous.”
Rispoli suggested that without the SEC’s appeal in play, Ripple now has considerable leverage. In his view, continuing the appeal could also be an “unnecessary gamble,” citing three essential reasons: The US Court of Appeals for the Second Circuit “can rule against Ripple.” Furthermore, potential “federal laws” could change the legal landscape, offsetting Ripple’s earlier loss. Also, Ripple has asserted that it not engages in the particular activities deemed illegal.
Furthermore, Rispoli identified the strategic element of retaining the appeal for negotiation: “Maintaining it for now IS the legal ‘consideration’ that may sufficiently justify reducing $125M penalty in exchange for dropping appeal.”
Overall, with the SEC having dismissed its appeal, eyes now turn to Ripple’s counsel and executives.
At press time, XRP traded at $2.49.
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