Could Ripple be the reason behind the ongoing delays in settling with the Securities and Exchanges Commission (SEC)? That’s the thought being put forward by lawyer James Murphy, widely recognized as MetaLawMan on X, who suggests Ripple might be stalling the XRP lawsuit settlement progress.

Interestingly, following the appointment of a new lead, the SEC has recently dropped several high-profile cases. Despite this trend, the XRP lawsuit continues to persist, with no definitive end appearing on the horizon.

Murphy suggests that the delays might stem from Ripple’s ongoing negotiations with the SEC. He posits that Ripple is attempting to persuade the commission to vacate some or all of Judge Analisa Torres’s earlier rulings, resulting in the current standstill.

Murphy’s Take: SEC Seems Open to a Ripple Settlement

From Murphy’s perspective, Judge Torres’ ruling was “unquestionably great” news for XRP holders. However, he points out that it wasn’t entirely favorable for Ripple. Judge Torres did find the crypto firm in violation of securities law and also imposed injunctions with associated ‘bad boy’ provisions, which presented significant challenges for the exchange.

Looking ahead, if Ripple has aspirations for a future exempt securities offering or even an Initial Public Offering (IPO), the court’s finding that they violated securities law becomes a significant hurdle. This ruling could seriously complicate those potential future plans.

Murphy suggests that it’s quite possible Ripple is intentionally prolonging the lawsuit. He believes this could be a strategy to gain more time for negotiating a more favorable agreement with the SEC. In his view, a better deal would involve Ripple persuading the SEC to vacate some, or potentially all, of Judge Torres’s rulings.

He further elaborated, stating his belief that the SEC would likely agree to a settlement where both parties withdraw their appeals and Ripple pays the $125 million penalty. Crucially, Murphy emphasizes that he believes Ripple is the party causing the delay, not the SEC.

Previously, this lawyer had anticipated the XRP lawsuit would be a more protracted affair compared to other crypto cases, citing the inherent complexities in reaching a settlement. However, his outlook has now shifted. He now anticipates the case concluding before April 16—the final date for Ripple to file its brief in the appeal process.

Contrasting View: Rispoli Argues the SEC is Delaying, Not Ripple

Lawyer Fred Rispoli offers a contrasting perspective to Murphy, asserting that it is the SEC that is delaying the settlement. Rispoli has previously indicated that a complete case dismissal remains a distinct possibility, particularly considering the SEC’s recent decision to drop other major cases, such as the one involving Coinbase.

In Rispoli’s view, Acting Chair Mark Uyeda and Commissioner Hester Peirce are reluctant to take responsibility for altering Ripple’s $125 million penalty. It appears they are hesitant to be seen as the ones who reduced this substantial financial judgment.

Sharing his thoughts on X on February 25th, Rispoli expressed his perspective: “My best guess is that, given the $125M judgment, that is real money that Uyeda and Pierce do not want to have responsibility for modifying. Not a great excuse (shows cowardice), but it does make some sense. The case is over regardless, either now or in a few months.” In this rather blunt assessment, Rispoli suggests their reluctance stems from a fear of modifying such a significant judgment, even if he considers it “cowardice.”

Rispoli further contends that the most straightforward resolution to the Ripple vs. SEC case would be for both parties to mutually withdraw their appeals. He suggests Ripple should concede its argument against the $125 million penalty and proceed with payment.

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Source: cryptopolitan.com