Pro-XRP attorney Jeremy Hogan explains why a settlement in the SEC case against Ripple continues to be delayed despite the regulator’s recent crypto shift.
Over the past few weeks, the Securities and Exchange Commission has made it clear that it intends to roll back its ‘crypto regulation by enforcement campaign’ with quick moves to pause or dismiss ongoing crypto cases.
However, one case has continued to linger amid this shift: the SEC case against Ripple. The question remains: why? One legal expert who has closely followed the case has now offered a probable reason.
Injunction to Blame?
Pro-XRP attorney Jeremy Hogan has attempted to explain why a settlement of the SEC case against Ripple continues to be delayed despite the regulator’s recent crypto shift.
In a lengthy thread on X on Sunday, March 2, Hogan asserted that the likely reason for the delay was the injunction imposed on Ripple by Judge Analisa Torres in her August 2024 court ruling. Specifically, Torres ruled that Ripple was prevented from offering XRP to institutional investors without SEC exemption.
Hogan speculated that Ripple would rather not have this injunction but noted that repealing it would be no easy task, which could see the case, currently in appeal, run until April or May 2025.
The lawyer highlighted the situation’s complexity by noting that the typical method of getting relief from judgments as defined in Rule 60 of the Federal Rules of Civil Procedure may likely not apply to the Ripple case.
Rule 60 allows for relief from a judgment in light of an error or new facts. Hogan notes that while Ripple could cite the SEC’s changing crypto rules as new facts, the ruling was based on the Howey test Supreme Court law, not the SEC’s rules.
Ripple’s Odds
According to Hogan, “Ripple only has one shot” at dissolving the injunction. He explained that the firm could try to bet on the judge’s discretion with “a very carefully worded motion” that must be vetted by the SEC. However, he expects these processes to take time, leading to his April 2025 and May 2025 resolution timelines.
The lawyer pointed out that the assumed support of the SEC is a key factor that could tip the scales in Ripple’s favor.
The SEC sued Ripple in December 2020 alleging that its sales of the crypto asset XRP represented unregistered security offerings.
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