The post XRP vs SEC Lawsuit Ends: Ripple’s Cross Appeal, Reduced Fine and More Revealed appeared first on Coinpedia Fintech News
The U.S Securities and Exchange Commission, has officially dropped its appeal against Ripple. This move aligns with the SEC’s recent actions in other cases, like those involving Coinbase and Kraken. While the appeal has been dropped, Ripple still faces a pending cross appeal and the unresolved $125 million fine. This development opens the door for Ripple to potentially renegotiate terms,
On the Thinking Crypto podcast, attorney Fred Rispoli was asked whether he believes Ripple will attempt a cross appeal to reduce or eliminate the $125 million fine imposed on them. He responded, acknowledging that Ripple is likely working on it. According to Rispoli, there are two components to all lawsuits— the law itself and the individuals involved.
Federal Agencies and Their Political Influence
Rispoli pointed out that federal agencies, like the SEC, often make decisions based on political factors. He explained that this has been a longstanding issue, with a shift in how these agencies operate over the past two decades. The process can be lengthy, with several levels of bureaucracy involved. He also said that Ripple’s case has advanced further than those of companies like Coinbase or Kraken, explaining why Ripple continues to push back rather than settle.
Possible Outcome for Ripple’s $125 Million Fine
Regarding the $125 million fine, Rispoli expressed the possibility that it could be significantly reduced, potentially down to around $10 to $12 million—an amount Ripple had initially proposed. He believes the SEC’s decision to drop its appeal signals that negotiations have already taken place. In exchange for Ripple’s cross appeal, the SEC may agree to a reduction in the fine or other concessions, such as lifting the injunctions placed on Ripple’s operations. This would allow Ripple to move forward without further regulatory restrictions.
Looking Ahead
Rispoli also speculated that Ripple may ultimately drop their cross appeal in exchange for a lower fine and a written agreement clarifying that Ripple’s activities are now compliant with the SEC’s rules. He suggested there’s a high chance of an agreement that clears Ripple’s path for future operations, including raising capital and potential future public offerings.