The crypto industry is experiencing a shift in regulatory approaches as the U.S. Securities and Exchange Commission (SEC) under new leadership is dropping lawsuits against several prominent crypto firms. Major players such as OpenSea, Robinhood, Uniswap, Gemini, MetaMask, and Coinbase are no longer facing the SEC’s scrutiny. The change in leadership and the loosening of regulatory pressure has caused many to wonder why Ripple’s legal battle with the SEC continues unabated.

Ripple vs. SEC: What’s Happening?

The ongoing lawsuit between Ripple and the SEC has fueled curiosity, especially now that the SEC is withdrawing lawsuits against other major crypto firms. Legal expert James Murphy, known as MetaLawMan, suggests that the reason Ripple is still in court could be strategic. Rather than the SEC delaying a settlement, Ripple might be holding out to secure better terms.

According to Murphy, Ripple may be seeking to have certain aspects of Judge Analisa Torres’ previous ruling vacated. This ruling found that Ripple’s actions violated securities laws, and the company was subject to an injunction with “bad boy” provisions, which could hinder Ripple’s future business prospects. If Ripple has plans to conduct a future securities offering or IPO, these provisions could be problematic.

Murphy believes that the SEC would have likely accepted a straightforward settlement, where both parties would dismiss their appeals and Ripple would pay the proposed $125 million penalty. However, the lack of agreement thus far suggests that Ripple is strategically delaying the resolution to secure more favorable terms.

Why is Ripple Holding Out?

If Ripple is indeed delaying a settlement, it could be positioning itself for more than just resolving the lawsuit. Ripple might be seeking to overturn parts of the ruling that would harm its ability to offer future securities or raise capital through an IPO.

This is an especially important consideration for Ripple, which has long harbored ambitions of going public. If Ripple is able to negotiate a settlement that avoids the unfavorable “bad boy” provisions and clears the way for future offerings, it could benefit the company significantly in the long run.

In essence, Ripple’s current stance may not be about avoiding a settlement but about ensuring that the settlement terms are more favorable to its future growth plans. If Ripple succeeds in removing these legal hurdles, it would set a strong legal precedent for the entire crypto industry.

Impact on the Industry

The longer this legal battle drags on, the more Ripple’s case becomes a critical one for the future of the crypto industry. Ripple’s fight is seen as a potential turning point that could influence how other crypto companies navigate their own legal challenges with regulators. If Ripple is successful in negotiating a better settlement, it could pave the way for more favorable regulatory environments for crypto firms going forward.

Murphy remains confident that the lawsuit will reach a conclusion soon. He believes that the intricate nature of the case and the ongoing negotiations have contributed to the delay, but with the deadline for Ripple to file its appeal brief fast approaching, he predicts that the case will likely wrap up before April 16, 2025.

Conclusion

The continued legal battle between Ripple and the SEC stands in stark contrast to the dropping of lawsuits against other major crypto firms. Ripple’s strategy of delaying settlement could be aimed at securing better terms for its future, including the potential for an IPO or exempt securities offering. The outcome of this case will not only have significant implications for Ripple but will likely shape the regulatory landscape for the entire crypto industry. Crypto enthusiasts and legal experts alike will be watching closely as the case progresses, eager to see how it unfolds and what precedent it sets for future regulatory actions.