- Anthony Scaramucci claims the SEC has ended its case against Ripple.
- The ongoing legal battle faces hurdles due to an injunction complicating a quick resolution.
During a podcast interview, Anthony Scaramucci, a former White House communications director, stated that the SEC has effectively dropped its case against Ripple. Scaramucci expressed this in his interview with Scott Melker in the podcast, Wolf of All Streets.
They discussed various developments in the crypto market, including how Donald Trump may affect digital assets. The debate covered some of the SEC’s recently abandoned lawsuits, such as ones filed against Coinbase, Uniswap, and Gemini. Scaramucci stated that Ripple’s case may follow in their footsteps.
Despite this, there has not yet been any official announcement from Ripple or the SEC about the dismissal of the case. Legal experts, though, believe there remain issues to be resolved, especially an injunction which may slow down the resolution.
Key Legal Hurdle Prevents Ripple Case Settlement
Attorney Jeremy Hogan clarified that the case had not yet been settled. He stated that one of the obstacles is still in Judge Analisa Torres’ ruling, which imposed an injunction preventing Ripple from directly selling XRP to institutional investors.
He clarified that while both parties can agree to settle, they can not simply ignore a court-imposed injunction.
The delay in settling Ripple's case (as pointed out by James below), is likely the injunction in Judge Torres' judgment.
The court enjoined Ripple from (basically) making sales directly to customers. There are workarounds for that, but obviously Ripple would rather not have the… https://t.co/pNAlIasEQM pic.twitter.com/WuN5micdtF
— Jeremy Hogan (@attorneyjeremy1) March 2, 2025
Legal scholars indicate that to discharge an injunction, there is a formal procedure within Rule 60 of the Federal Rules of Civil Procedure. The rule dictates how to seek relief from a judgment, but it is not straightforward.
The court would need to find there was a material change of circumstances in which to relieve the prohibition of Ripple’s sales. The SEC could, in turn, argue that its ongoing crypto regulation reform makes the injunction unnecessary.
However, the court initially relied on the Howey test, which is the judicial test, to determine whether an asset constitutes a security. The SEC can not overcome Supreme Court precedent, and convincing the court to overrule its decision will not be easy.
Injunction Appeal Decision Expected by April
If Ripple wants the injunction revoked, it must compose a well-worded motion to persuade the court to reconsider. The process can take several months, given that SEC approval of the phrasing is also needed. Once agreed to, each party must abandon their respective appeals before bringing the case to the court for ruling.
Hogan stated that while there is potential to dismiss the appeals in April, dissolving the injunction is not going to happen until May. Meanwhile, Ripple has to navigate the legal complexities of its ongoing proceedings.