XRP News Today: Ripple SEC Case Delayed by SEC Internal Procedures

The ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) has been a focal point of attention in the cryptocurrency industry. The case, which began in December 2020, centers around the SEC's allegation that Ripple conducted an unregistered securities offering through the sale of its native cryptocurrency, XRP. Ripple has maintained that XRP is not a security but rather a currency, arguing that the SEC's lawsuit is an overreach of its regulatory authority.

The legal proceedings have been ongoing for over a year, with both sides presenting their arguments and evidence in court. The outcome of the case remains uncertain, but it has already had a significant impact on the cryptocurrency market. The legal battle has also raised broader questions about the regulation of cryptocurrencies in the United States. The SEC's lawsuit against Ripple has been seen by some as an attempt to assert its authority over the cryptocurrency industry, which has largely operated outside of traditional regulatory frameworks. However, others have argued that the SEC's actions are necessary to protect investors from fraudulent and deceptive practices.

The delay in reaching a settlement has been a subject of much speculation. Multiple theories suggest that the delay stems from intricate negotiations between Ripple and the SEC. However, Marc Fagel, a securities attorney, has provided a contrasting viewpoint. He insists that speculation of settlement talks is unfounded, pinpointing the intricacy of internal procedures as the likely cause behind the delay. Fagel has clarified that the delay in reaching a settlement has nothing to do with secret negotiations—instead, it's the SEC's internal procedures, such as drafting action memos, that are causing the holdup.

Fagel pointed to bureaucratic steps like action memo drafting, internal reviews, and commissioner vote scheduling as the primary reasons behind the holdup. He dismissed the idea that either the judge or the SEC is deliberately stalling the case, adding, “Nobody is holding up the case.” The latest commentary comes after a July 17 closed-door meeting failed to deliver the anticipated breakthrough. Some XRP holders believed a resolution was imminent following Ripple’s decision to dismiss its appeal, but Fagel countered that SEC enforcement votes can take weeks to be calendared.

Fagel also explained that the SEC’s weekly closed-door sessions follow a routine format and shouldn’t be interpreted as case-specific. Meanwhile, Fagel noted that Ripple has already paid its $125 million penalty in cash, not XRP, but stressed this doesn’t mean the case is over—final settlement still depends on the resolution of appeal procedures. Despite Fagel’s measured tone, the XRP community remains eager for closure. But if his assessment is correct, the wait may continue for several more weeks.

With the litigation stretching over a long period, ambiguity persists among Ripple enthusiasts and industry experts about the outcome. Observers in the crypto realm are particularly interested in how the litigation’s conclusion could influence Ripple’s future. The sustained conflict signals that any resolution isn’t likely imminent. Stakeholders across the broader digital currency spectrum view the case as potentially precedent-setting. The unfolding developments continuously shape expectations, with market participants keenly observing the implications.

The lack of official settlement announcements suggests that exhaustive litigation could continue. Despite this, Ripple’s community and the cryptocurrency market closely monitor emerging details, anticipating potential impacts that could redefine investment strategies and future pathways. The legal clash between Ripple and the SEC is likely to continue for some time, as both sides have indicated that they are prepared to take the case to trial if necessary. The outcome of the case will have significant implications for the cryptocurrency industry, as it could set a precedent for how digital assets are regulated in the United States.