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The long-running Ripple vs SEC lawsuit has hit another procedural snag, frustrating legal experts and the XRP community alike. Despite both sides expressing intent to close the case, internal confusion within the SEC has left the dismissal of the appeal in limbo.
Legal Experts Point to Voting Confusion
Crypto attorney Bill Morgan recently questioned whether SEC Chair Paul Atkins can rally the commission to hold a final vote dismissing the appeal. Morgan also raised doubts about whether SEC attorneys are prepared to file the required documents to finalize the process.
Former SEC regional director Marc Fagel weighed in, revealing that a previous settlement attempt failed when the court rejected conditions Ripple had requested—namely, lifting an injunction and reducing penalties. This rejection forced both parties to restart the dismissal process from scratch.
Is Another Vote the Problem?
One of the main sources of delay appears to be uncertainty about whether a second internal SEC vote is needed. Fagel noted that while a previous vote may have partially authorized dismissal, the ongoing holdup strongly suggests that a new vote is required under the new chair’s leadership.
Morgan added that even former SEC lawyers he consulted weren’t sure if a second vote was procedurally necessary, which only highlights the agency’s internal communication breakdown.
Also Read: Ripple vs SEC Lawsuit: Appeal Dismissal Could Take Weeks, Says Former SEC Lawyer
Bureaucracy Stalls Final Resolution
Despite mutual agreement between Ripple and the SEC to end the case, the agency’s slow and unclear internal processes are holding up the appeal’s dismissal. Ripple’s attempt to negotiate a reduced penalty backfired, making what could have been a straightforward wrap-up far more complicated.
Until the SEC completes its internal procedures—likely including a second vote—the case cannot be officially closed, leaving Ripple in legal limbo and XRP holders in suspense.
The Ripple vs SEC delay isn’t due to renewed legal battles but rather procedural gridlock. As investors wait for closure, the episode underscores how regulatory complexity can outlast litigation itself, even when both parties are ready to move on.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
