FOX Business journalist Eleanor Terrett refuted a circulating rumor that the U.S. Securities and Exchange Commission (SEC) was considering dismissing its appeal against Ripple Labs. The speculation emerged after the SEC’s Crypto Task Force held a meeting with legal experts to address regulatory issues related to the crypto industry.

In the meeting, legal experts Jason Gottlieb, Andrew Hinkes, and J.W. Verret presented a document analyzing the SEC’s stance on certain crypto-related matters. The document touched on the Ripple case as a pivotal point in discussing the SEC’s position on cryptos, especially XRP, and how it relates to the broader issue of crypto regulation.

The Ripple case has been highly publicized due to the SEC’s claim that Ripple violated federal securities laws by selling XRP tokens as unregistered securities. However, the document highlighted that, in the legal proceedings, courts had not universally accepted the SEC’s theory regarding crypto-related transactions. Specifically, the Ripple case questioned whether secondary market transactions of XRP tokens could be classified as investment contracts, as the SEC has previously argued.

The document also noted that Judge Analisa Torres, who presided over the Ripple case, ruled that XRP transactions did not constitute investment contracts. She emphasized that XRP buyers could not ascertain whether their payment went directly to Ripple or other sellers, undermining the SEC’s claim that XRP was a security in this context. This ruling was critical as it challenged the SEC’s broad assertions about the nature of cryptocurrencies and their regulation.

Following the document’s review, some members of the XRP community speculated that the SEC’s Crypto Task Force had discussed the possibility of dismissing its appeal against Ripple. However, Terrett quickly dismissed the rumors. Responding to the claims on social media, she firmly stated, “No,” indicating that there was no truth to the idea that the SEC was preparing to drop the case. Terrett’s response also included a facepalm emoji, signaling her frustration at the unfounded rumors.

At this stage, there is no official confirmation that the SEC is considering dropping its appeal. While the commission has paused or dismissed related lawsuits in the past, its stance on the Ripple case remains uncertain. Legal experts in the crypto industry note that the case is complicated due to Judge Torres’ ruling. Her decision found Ripple guilty of violating securities laws for its institutional sales of XRP without registering the tokens as securities with the SEC. This ruling also imposed a fine of $125 million and an injunction on Ripple’s future institutional sales.

Despite this, the case is not yet over, as both Ripple and the SEC may appeal or seek further clarification on certain aspects of the ruling. Should the SEC decide to proceed with its appeal, they will have to work with Judge Torres to potentially amend or revisit the terms of the case.

Ripple’s legal battle with the SEC has become a landmark case in the world of crypto regulation. The outcome of this case is poised to set significant precedents for how other cryptocurrencies may be treated under U.S. securities law. While the speculation about the SEC dropping the case may be unsubstantiated, the Ripple v. SEC case continues to be a focal point in the ongoing debate over the regulatory framework for digital assets.

In conclusion, while rumors about the SEC potentially dropping its appeal against Ripple have circulated, they have been categorically denied by experts, including Eleanor Terrett. The case remains ongoing, and its outcome will likely have far-reaching implications for the crypto industry and its regulatory future.