Ripple's IPO Hinge on SEC Case Resolution

The US Securities and Exchange Commission (SEC) is nearing the conclusion of its case against Ripple Labs, which involves the sale of unregistered securities. However, several obstacles stand in the way of a swift resolution, with an injunction imposed by Judge Analisa Torres being a significant factor.

According to attorney Jeremy Hogan, the injunction, which restricts Ripple Labs from selling securities to the public under certain conditions, is the primary reason for the delay in settling the case. This injunction could potentially hinder Ripple Labs' future plans for an Initial Public Offering (IPO).

Hogan suggests that Ripple Labs' attempt to have the court disregard the injunction is the main cause of the delay in dismissing the case. He believes that the case may not be resolved until April or May, unlike other cases that have already been dismissed.

The SEC's recent dismissals of Coinbase's case and the shutdown of enforcement action against Gemini have sparked speculation that the end of the Ripple SEC case is near. However, the injunction imposed by Judge Torres presents a challenge to a swift resolution.

Rule 60 of the Federal Rules provides relief for a judgment in special circumstances, such as new facts or errors. However, the injunction in the Ripple SEC case is based on the Howey test, a longstanding US Supreme Court law, making it difficult for the court to set aside the injunction.

Hogan notes that if Ripple Labs can present a compelling argument, the judge may use her discretion to set aside the injunction. Following a closed-door meeting with the SEC, Ripple Labs is in the final stages of its legal battle with the security watchdog.

Hogan predicts that parties will dismiss their appeals in April, effectively bringing an end to the lengthy legal saga in May. In positive news, XRP has been included in the US Crypto Strategic Reserve following an announcement by President Donald Trump.