Is a Major Ripple v. SEC Lawsuit Development Expected This Week? Here’s Why

TL;DR

• The SEC’s February 27 meeting may address Ripple’s XRP, signaling a potential pro-crypto shift under Chairman Mark Uyeda.

• Unlike recent SEC agreements, the Ripple lawsuit is more complex. Experts predict a settlement, with Judge Torres overseeing compliance with a $125M fine.

XRP on the Agenda

The lawsuit between Ripple and the US Securities and Exchange Commission (SEC) remains ongoing more than four years. However, multiple developments and events hint that a final resolution could be just around the corner. One example is the regulator’s Sunshine Act meeting scheduled for February 27, which will be closed to the public and will touch upon numerous matters. 

Some X users noted that Ripple’s native token will also be included in the discussions this time. The analyst using the moniker ALLINCRYPTO outlined that the SEC will particularly focus on Bitwise’s application to introduce a spot XRP exchange-traded fund (ETF) in the United States.

It is worth mentioning that the Commission has already acknowledged the company’s filing, meaning it must officially approve or reject the product’s launch within 240 days. 

A potential green light would double down on the SEC’s pro-crypto approach since the departure of Gary Gensler. Recall that the former Chairman (who was known for his hostile stance toward the digital asset industry) resigned on January 20 and was succeeded by Mark Uyeda. 

Under the new leadership, the agency dismissed several lawsuits, including those against Coinbase and Uniswap. In addition, the case versus Binance was paused for 60 days.

The XRP Army has raised hopes that the legal battle against their favorite company could be the next to reach its conclusion.

Not Like the Rest

It is important to note that the Ripple v. SEC lawsuit is different and far more complex than the other cases involving the Commission and crypto entities. One person giving his two cents was the popular US lawyer Jeremy Hogan:

“The SEC broke up with Coinbase after a couple of dates. Ripple and the SEC live together and have a baby,” the attorney stated.

Hogan believes dismissing the case against Ripple is unlikely, predicting a settlement instead. Eleanor Terrett (a journalist at Fox Business) agreed, saying that Judge Torres has already ordered a $125 million fine on the company for violating certain rules. She added that the magistrate can retain jurisdiction until August 7 “to make sure the terms of the order are met.”

Recall that Ripple’s bosses were ready to pay the penalty, but the SEC appealed. The move was expected since the amount represented just a fraction of the $2 billion the watchdog initially requested.