The ongoing XRP lawsuit has captured the attention of the cryptocurrency community, with various legal experts providing differing opinions about the cause of the prolonged settlement delay. James Murphy, known as MetaLawMan, recently suggested that Ripple may be stalling the resolution of the case due to potential plans for an Initial Public Offering (IPO), rather than the U.S. Securities and Exchange Commission (SEC) being the primary party responsible for the holdup.

Murphy, a well-known legal analyst, believes Ripple is deliberately prolonging the lawsuit in an attempt to secure a more favorable outcome for itself. In particular, he highlights that Ripple may be negotiating with the SEC to overturn some or all of Judge Analisa Torres’ prior decisions. These decisions, which found Ripple guilty of violating securities laws, pose a substantial roadblock for Ripple’s plans for future growth, including an IPO or other exempt securities offerings. According to Murphy, by stalling, Ripple may be hoping to convince the SEC to vacate parts of the ruling, thus paving the way for a more favorable settlement.

Murphy notes that the SEC appears to be open to a resolution in which both parties dismiss their appeals, and Ripple pays the $125 million penalty imposed on it. He claims the SEC would likely have no objections to such a settlement. However, Murphy firmly believes that Ripple is responsible for delaying the process, as it continues to seek a better deal. Murphy also predicts that the case could conclude before April 16, 2025, the date when Ripple is scheduled to file its appeal brief.

Contrasting with Murphy’s stance, Fred Rispoli, another legal expert, argues that the SEC, not Ripple, is the party responsible for the delay. Rispoli suggests that the SEC has been hesitant to modify the $125 million penalty because of the financial responsibility it entails. He believes that acting SEC Chair Mark Uyeda and Commissioner Hester Peirce are reluctant to make a decision that would alter such a substantial penalty. Rispoli commented that the situation reflects a lack of courage from the SEC, particularly as it continues to hesitate in modifying the fine.

Rispoli’s analysis is based on his previous statements regarding the potential dismissal of the case, similar to how other major cases, including one involving Coinbase, were dropped. He argues that the easiest and most effective solution for both parties would be for Ripple to drop its claim that the $125 million penalty is excessive and pay it. In his view, withdrawing appeals from both sides could bring the case to a close quickly, allowing Ripple and the SEC to move forward with a clean slate.

While there is a clear divergence in the legal experts’ views, both Murphy and Rispoli agree that the case is complex and has the potential for a drawn-out resolution. XRP holders and the broader crypto market are waiting with bated breath to see how this lawsuit unfolds, as its outcome could significantly impact Ripple’s future operations and its ability to engage in key market activities like an IPO. Given the evolving nature of the case, both Ripple and the SEC appear to be playing a waiting game, with the end result still uncertain.