- A settlement between SEC and Ripple could end the litigation at any time, although one is not currently being discussed.
- SEC v. Ripple could conclude between 2025 and 2026 if both sides accept Judge Torres’ decision.
The protracted court standoff between the U.S. Securities and Exchange Commission (SEC) and Ripple continues to capture the attention of the crypto industry, with various speculations about the outcome of this litigation resonating among pundits and followers.
Ashley Prosper, an XRP supporter known for his SEC filings, proposes seven different scenarios by which the legal dispute between SEC and Ripple could be resolved.
Possible Conclusions of the SEC v. Ripple Case
Prosper suggests that a settlement between the parties could mark the end of this years-long legal contest. Although no settlement is currently being discussed, Ripple is showing a willingness to resolve the litigation in this manner, while the SEC has not expressed a desire to settle.
Another possibility is that the litigation will end with both parties accepting Judge Analisa Torres’ decision on remedies. Prosper anticipates that, in this case, neither side would seek to appeal the judge’s decisions, including the remedies ruling, envisioning this outcome by 2024.
A third avenue would be for one or both parties to appeal to the Second Circuit after the remedies phase. If the court seconds Judge Torres’ decision and neither party proceeds to the Supreme Court, the case could conclude between 2025 and 2026.
Other Possible Scenarios
In a fourth scenario, either Ripple, the SEC or both parties could appeal to the Second Circuit following the remedies ruling. If the Second Circuit upholds Judge Torres’ decision and either party takes the case to the Supreme Court, the litigation could end between 2026 and 2027.
As a fifth possibility, the expert mentions that the litigation could end if the parties agree to a new ruling by Judge Torres after the Second Circuit refers the case to her, with a possible outcome between 2025 and 2026.
In addition, a sixth scenario involves either party appealing to the Second Circuit and the Second Circuit disagrees with Judge Torres, remanding the case.
Prosper indicates that if one of the parties appeals the new ruling, but the Second Circuit agrees with the decision, the case would conclude in 2026 – 2027, unless the affected party decides to go to the Supreme Court.
Finally, the seventh scenario contemplates that the litigation would end in 2027 – 2028 if one of the parties decides to take the case to the Supreme Court after losing on appeal.
Current Status of the Litigation
The case is currently in the remedies phase, which will determine the appropriate sanction for Ripple’s violations of securities law through its institutional sales of XRP.
Recently, the SEC scored a win against Ripple when Magistrate Judge Sarah Netburn compelled the company to turn over its audited financial statements from 2022 to 2023 and the contracts used to sell XRP to institutional customers. Ripple, which initially had until Feb. 12 to submit the documents, requested a one-week extension.
This legal offers a multifaceted view on the future of Ripple and its XRP token, highlighting the uncertainty and various routes this legal showdown could take, each with distinct implications for the company, its users and the crypto market in general.
