The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) may conclude without any modifications to the $125 million penalty imposed on Ripple, according to attorney Fred Rispoli. The case, which has been a focal point in cryptocurrency regulation, is now awaiting further developments, potentially under new SEC leadership.
SEC’s Strategy: Waiting for New Leadership?
Attorney Fred Rispoli suggested that the SEC might be delaying further action until a new chairman is appointed. Currently, the agency is under the leadership of acting Chair Mark Uyeda, who heads a 2-1 pro-crypto commission. With Paul Atkins being considered for the permanent role, there is speculation that the SEC’s stance on cryptocurrency enforcement could shift.
“The best satisfaction of this, if true, is that it nullifies the thousands of hours of work put in by SEC staff to get the $125M judgment,” Rispoli stated in a post on X (formerly Twitter). His analysis suggests that maintaining the fine while dropping an appeal could save the SEC from prolonged litigation.
My new theory on SEC vs. Ripple:
— Fred Rispoli (@freddyriz) March 7, 2025
No reason why the current 2-1 pro-crypto Commission wouldn't drop the appeal and keep the $125M judgment in place. Starting to think they are waiting for Atkins in order to have the head guy in place for cover to drop/reduce the $125M judgment.
Could Ripple Pay the Fine in XRP?
A notable discussion in the crypto community revolves around the possibility of Ripple settling the fine using XRP instead of cash. Market analyst Vincent Van Code proposed that Ripple might negotiate an arrangement to transfer XRP to a government-controlled digital asset reserve rather than paying the penalty in U.S. dollars.
“Some are speculating that Ripple, rather than pay $125 million in dollars, provides the equivalent in XRP to the new crypto strategic reserve,” Van Code noted. However, Rispoli remains skeptical about the feasibility of such a settlement, citing slow progress in legal negotiations.
XRP Sales Restrictions and Legal Implications
A key aspect of the lawsuit involves the classification of XRP as a security. In 2023, Judge Analisa Torres ruled that Ripple’s institutional sales of XRP constituted securities transactions, resulting in the $125 million fine. Ripple is actively contesting an injunction restricting certain sales of XRP, particularly to banks and payment processors.
Attorney Jeremy Hogan suggested that Ripple may be engaging with the Second Circuit Court of Appeals to overturn the ruling. Meanwhile, Ripple CTO David Schwartz has reassured investors that XRP inflation is not a concern, stating, “There is literally no function to create any more XRP. The code to do such a thing does not exist.”
Also Read: Ripple vs. SEC: Key Appeals Court Decision Could Shape the Future of Crypto Regulation
The lawsuit is currently under review by the Second Circuit Court of Appeals. The SEC submitted its arguments on January 15, 2025, and Ripple has until April 16 to respond. As the deadline approaches, the crypto industry remains watchful, anticipating a resolution that could set a precedent for digital asset regulations.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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