Ripple's Legal Battle with SEC Set to Drag On: Complexity and Cross-Appeal Prolong Settlement

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is expected to take longer to resolve than the recent Coinbase case, according to legal experts. The complexity of the Ripple lawsuit, with its existing ruling and cross-appeal, presents unique challenges that may delay a settlement.

Ripple's case faces a different set of challenges compared to Coinbase's recent settlement. The ruling already handed down by Judge Torres, ordering Ripple to pay a $125 million penalty, complicates the situation. Ripple's options now include requesting a penalty reduction, which would require both parties to reach an agreement. However, legal experts suggest that altering the separation of sales, as stipulated by Judge Torres, is unlikely.

The Ripple vs. SEC lawsuit involves a cross-appeal, adding another layer of complexity. The timing of Ripple's upcoming filing, scheduled for April, may be pivotal in determining the case's trajectory. Ripple's request to extend the filing deadline to April 16, 2025, further indicates that a resolution may take longer than anticipated. As Ripple's legal team moves forward with the appeal, both parties will have to consider how to approach the next steps, potentially including negotiations for a settlement or a reduction in the penalty.

The involvement of the Appellate Court could also extend the timeline for resolving the Ripple vs. SEC lawsuit. The court's panel of three judges will review and hear the case, a process that takes additional time compared to the procedures of a District Court. This contrasts with the process seen in the Coinbase case, where a settlement was reached more quickly, possibly due to the absence of such complications. The SEC may also choose to seek an agreement with Ripple at the district court level, requiring the approval of Judge Torres, who retains jurisdiction until August 2025.

Legal experts have noted that the Ripple vs. SEC lawsuit might take longer to resolve due to the multiple steps involved in the appeal process. The uncertainty surrounding the SEC's next steps and the need for Judge Torres' approval further complicate the situation. As the case progresses, both parties will need to navigate these complexities to reach a resolution.