Ripple's SEC Case Nears Resolution: Hogan Predicts May End
1min read The U.S. Securities and Exchange Commission's (SEC) ongoing case against Ripple, the payments firm, is expected to be resolved by May, according to legal expert Jeremy Hogan. This prediction comes amidst a series of significant crypto enforcement actions taken by the SEC this year, including lawsuits against coinbase, Kraken, MetaMask, and investigations into Robinhood and OpenSea.
Hogan, a crypto legal expert, agrees with attorney James "MetaLawMan" Murphy's theory that the SEC's delay in dismissing the Ripple case could be due to negotiations between the firm and the SEC. Murphy suggests that Ripple is "negotiating hard to get the SEC to agree to vacate some or all of Judge Torres’ decision."
The SEC first sued Ripple in late 2020, alleging that the firm sold XRP as an unregistered security. In 2023, District Judge Analisa Torres ruled that Ripple's automated, open-market sales of XRP did not constitute security offerings. However, the judge sided with the SEC's claim that Ripple's sales of XRP directly to institutional buyers were securities offerings.
Hogan explains that the delay in dismissing the case is likely due to the injunction in Torres' ruling, which prevents Ripple from making sales directly to customers. He notes that dissolving an injunction is not simple and requires both parties to agree and the court's approval. This process could take until April or May, according to Hogan.
To dissolve the injunction, Ripple must draft a carefully worded motion, which the SEC must sign off on. Both parties would then stipulate to dismiss their appeals, and Ripple would file its motion with the trial court. The judge would then rule on the motion, which could also take some time. Hogan believes that the appeals could be dismissed in April, prior to Ripple's brief due date.
