Legal experts react as Andrew Parish, the co-founder of Arch Public, suggests that the SEC lawsuit against Ripple could be nearing its conclusion.
Andrew made the bold claim today, emphasizing that he learned about the development from two sources familiar with the matter.
Expected Outcomes
The popular crypto figure highlighted three expected outcomes from the imminent resolution of the Ripple case.
XRP Considered a Commodity
According to him, the resolution would seriously consider XRP as a commodity, potentially influencing how it will be regulated going forward. This would mark a major shift from the commission’s initial claim about XRP.
Recall that the SEC initially labeled XRP as a security in December 2020, when it filed the lawsuit against Ripple. The regulator alleged that Ripple sold XRP as a security to U.S. investors without registering the transactions as security offerings.
However, a federal court pushed back on the SEC’s classification of XRP, declaring that the coin is not a security in itself. Interestingly, the SEC did not challenge the court’s finding on XRP’s non-security status in its appeal against the verdict.
Reduced Fine
Second, Andrew suggested that the SEC would accept a significantly reduced fine compared to the amount the judge imposed against Ripple. In August 2024, Judge Analisa Torres ruled that Ripple had breached federal securities laws by conducting illegal institutional sales of XRP, imposing a fine of $125 million and a permanent injunction.
Andrew’s comments suggest that Ripple would now pay a significantly lower fine for this violation instead of the $125 million Judge Torres ordered.
Legal Precedent for Crypto Cases
Finally, Andrew suggested that the SEC’s new leadership’s handling of the Ripple case could set a major precedent for crypto-related cases through the upcoming resolution. As a result, the securities regulator might want to handle the lawsuit’s resolution with caution.
Attorneys Deaton and Rispoli React
It bears mentioning that Andrew is not fond of XRP and has rarely made positive comments about the coin in recent times. He has often called on his followers to sell XRP for Bitcoin. The Bitcoin maxi also advocated against the coin’s inclusion in the U.S. crypto reserve.
Given his stance against XRP, the recent suggestion that the Ripple case is approaching an imminent resolution triggered reactions among XRP proponents, with top legal experts John Deaton and Fred Rispoli responding to the disclosure.
Attorney Deaton quoted the tweet with the eye emoji, seeking to draw the broader XRP community’s attention to its importance.
Similarly, Attorney Fred Rispoli highlighted that he tends to believe Andrew’s reports on XRP when they are positive. This is likely due to the fact that the Bitcoin maxi would only be forced to mention something positive around the altcoin if he believes it is true.
Rispoli suggested that this selective trust is not hypocritical but a manifestation of unbridled hope.
Ripple Case Ending Soon?
Meanwhile, multiple reports suggest that the Ripple lawsuit is nearing its conclusion. Eleanor Terrett, the host of Crypto America, shared a similar sentiment last week. The pro-crypto journalist highlighted the August verdict as the major factor delaying the lawsuit’s resolution.
According to her, Ripple is negotiating with the SEC to dismiss the permanent injunction completely. The company contends it is unfair to be punished based on the ruling, especially given the SEC’s recent decision to dismiss several crypto-related lawsuits.
Besides speculations, none of the parties have issued official statements regarding ongoing settlement discussions.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
