Former SEC official John Reed Stark has given his take on the Ripple vs. SEC lawsuit and crypto cases the Commission recently dropped. Based on his comments, the SEC could soon end the Ripple lawsuit as it continues to dismiss non-fraud cases.
Expert Hints That Ripple vs. SEC Lawsuit Could End Soon
Reacting to recent information that involved the Commission dropping its appeal of the ‘Dealer’ rule litigation, legal expert John Reed hinted that the Ripple vs. SEC lawsuit could soon end. He asserted that the Ripple appeal is most certainly in line for a dismissal, a move that would end a four-year legal battle.
John Reed Stark further explained why he holds this belief, stating that the new SEC top brass has made it crystal clear that the Commission will never file another court pleading of any kind arguing that a digital asset is a security, at least not until Hester Peirce’s crypto task force has completed its mission.
This task force has been charged with providing regulatory clarity for the crypto industry and determining whether cryptocurrencies can be classified as securities. The SEC has so far moved to pause crypto cases like the Binance lawsuit based on the argument that the task force’s findings could impact the case.
It is worth mentioning that the court just dismissed the SEC Coinbase lawsuit with prejudice, following the Commission’s agreement to drop the case. As such, the lawsuit could also be dropped with prejudice, meaning that the Commission would not be able to file it again.
However, while John Reed Stark predicted that the Ripple vs. SEC lawsuit could end soon, other legal experts, such as Jeremy Hogan, suggested that it might not happen as quickly as everyone expects. Hogan predicted a Ripple SEC settlement might not happen until April or May.
Meanwhile, expert Sherrie explained that a settlement isn’t as straightforward as the Coinbase lawsuit because Judge Analisa Torres already awarded a penalty against the crypto firm.
Why The Case Could Come Last
Legal expert The MetaLawMan explained that the Ripple vs. SEC case could be settled last because of the complexity involved in negotiating a resolution. Similar to Sherrie’s view, he noted that the Ripple lawsuit is the only live crypto case with a final judgment in place. He added that the SEC and Ripple lawyers must negotiate what to do about the judgment and the $125 million penalty against the crypto firm, which could take time.
Lawyer Fred Rispoli also opined that the monetary judgment is probably why the lawsuit is still ongoing. He remarked that the acting SEC Chair Mark Uyeda and Commissioner Hester Peirce probably do not want to take responsibility for modifying the penalty against Ripple. However, the legal expert is convinced that the case will end at some point with both parties settling.
