- Ripple is negotiating with the SEC to remove or modify the permanent injunction that restricts institutional XRP sales.
- The resolution of the case hinges on whether the SEC consents to this change or if the court ultimately decides to vacate the injunction.
The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is approaching a resolution. However, one critical issue remains unresolved—the permanent injunction preventing Ripple from selling XRP to institutional investors.
The Final Hurdles in the Case
According to journalist Eleanor Terrett, the only remaining obstacles are a $125 million penalty and the permanent injunction imposed by the court. While Ripple can easily afford the financial penalty, legal experts suggest that the company’s primary concern is the injunction, which significantly impacts its business operations.
Yassin Mobarak, founder of Dizer Capital, believes that the delay in resolving the case is due to ongoing negotiations between Ripple and the SEC regarding this restriction.
Legal Experts Weigh In
Several legal experts have shared insights into how Ripple might navigate this situation:
- Attorney Bill Morgan clarified that Ripple isn’t looking to remove the injunction outright but is trying to negotiate with the SEC to consent to a motion that asks the judge to vacate it. However, even with the SEC’s agreement, the court’s final decision remains uncertain.
- MetaLawMan, another respected attorney, speculated that Ripple might attempt to modify parts of Judge Torres’ ruling, which found securities law violations. While the ruling benefited XRP holders, the injunction created business complications for Ripple.
- Attorney Jeremy Hogan suggested that the lawsuit could conclude if Ripple and the SEC agree to a private settlement that does not require court approval. However, he questioned whether the SEC would agree to a deal that allows Ripple to bypass the injunction.
What’s Next for Ripple?
The resolution of the case depends on whether the SEC is willing to negotiate the terms of the injunction. If the SEC remains firm, Ripple’s legal options may be limited. However, with a shift in the SEC’s stance towards crypto regulation under the current administration, there’s still a possibility that the court may decide to vacate the injunction.
For now, Ripple and the XRP community await the final decision, which could shape the future of institutional sales of XRP and broader crypto regulations.
