The US Securities and Exchange Commission (SEC) is inching toward bringing down the curtain on its case against Ripple Labs for the sale of unregistered securities. However, several bottlenecks stand in the way of a swift resolution for the Ripple SEC Case but there appears a way out for both parties.
An Injunction By Judge Torres Complicates Matters For Both Parties
According to a post by Attorney Jeremy Hogan, the delay in bringing the Ripple SEC case to a close lies with an injunction imposed by Judge Analisa Torres. In her landmark judgment, District Judge Torres previously restrained Ripple Labs from selling securities to the public subject to certain conditions.
The presence of the injunction could hurt Ripple Lab’s chances of proceeding with an IPO in the future, a position that appears unacceptable to the firm. Hogan says Ripple Labs’ attempt to ask the court to disregard the injunction is the primary source of delay for a dismissal.
“How do you dissolve an injunction?” read Hogan’s X post. “It’s not simple, which is why I think the case doesn’t resolve until April-May whereas all these other cases have already been dismissed.”
The Commission’s dismissals of Coinbase’s case and shuttering enforcement action against Gemini have triggered speculation that the end is in sight for the Ripple SEC case.
A Way Out For The Ripple SEC Case
Asking the court to ignore its injunction because the parties have settled is an uphill task in the Ripple SEC Case. Rule 60 of the Federal Rules makes provision for relief for a judgment in special circumstances in light of new facts or errors.
However, the injunction hinges on the Howey test, a longstanding US Supreme Court Law, making it difficult for the court to set aside the injunction. Hogan notes that if Ripple Labs can present a powerful argument for the court, the judge may use her discretion to set aside the injunction. Following a closed-door meeting with the SEC, Ripple Labs is in the endgame of its legal battle with the security watchdog.
“Ripple only has one shot at getting the injunction dissolved with the trial court so it will have to draft a very carefully worded motion,” said Hogan. “That takes time and the SEC will basically have to sign off on it – more complication.
Hogan predicts that parties will dismiss their appeals in April, effectively bringing an end to the drawn-out legal saga in May. In upbeat news, XRP made the cut for the US Crypto Strategic Reserve following an announcement by President Donald Trump.
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