FOX Business journalist Terrett confirms the reason the U.S. SEC is taking longer to drop the Ripple lawsuit on the firm’s XRP sales.
The U.S. Securities and Exchange Commission (SEC) recently withdrew its lawsuit against Coinbase, confirming the promised shift in its approach to crypto enforcement under acting Chair Mark Uyeda.
However, the agency has not made a decision for the case against Ripple, which has been ongoing since December 2020. According to Fox Business reporter Eleanor Terrett, the delay is due to the procedural complexity of the case.
Terrett, who has been closely following regulatory actions in the crypto space, responded to numerous inquiries about the Ripple case after the SEC dropped its lawsuit against Coinbase.
Ripple Case More Procedurally Complex
Citing a commentary from community pundit Sherrie, she explained that Ripple’s legal battle is different because Judge Analisa Torres has already issued a ruling that requires Ripple to pay a $125 million penalty. Notably, this court order adds another layer of legal steps before any resolution can be reached.
🚨NEW: On @Ripple, as @CherryEmpress21 notes, it’s more procedurally complex than @coinbase because they already have an order from Judge Torres at the district level to pay the $125M penalty.
Torres, according to the final judgment, will retain jurisdiction over the case for a… https://t.co/KEkIMvrP5J pic.twitter.com/QqBSwPYA4p
— Eleanor Terrett (@EleanorTerrett) February 21, 2025
Judge Torres retains jurisdiction over the case for one year, until August 7, 2025, to ensure Ripple meets the penalty terms. Even if the SEC decides to dismiss its appeal in the Second Circuit, the agency will still need to determine the appropriate approach for the district court regarding the penalty.
For context, this process may involve negotiating a reduction or seeking to dismiss the fine, both of which require Judge Torres’s approval. “It’s more procedurally complex than Coinbase,” Terrett noted.
Sherrie had noted that the SEC cannot simply abandon the case without addressing the existing penalty. This contrasts with Coinbase’s situation, where no final court ruling had been made, allowing the SEC to drop the case more easily.
What About a Quick Settlement?
Replying to Terrett, crypto trader Jesse suggested that a settlement between the SEC and Ripple could end the case. He argued that if the current administration truly wanted to end the SEC’s aggressive stance on crypto, it should take action on the Ripple case as well.
Terrett confirmed that while a settlement was theoretically possible, the existing district court ruling made it a more complicated process compared to Coinbase’s case. The involvement of a final judgment means there are additional legal hurdles to clear before they can reach a resolution.
Meanwhile, pro-crypto attorney Jeremy Hogan, a well-known legal expert, illustrated the situation with a metaphor. He compared Coinbase’s lawsuit to a short-term relationship that ended quickly, while the Ripple case was more like a long-term one with deeper commitments such as a baby.
Coinbase and the SEC broke up after a couple dates. Ripple and the SEC moved in together and have a baby on the way. That break up just takes longer is all.
— Jeremy Hogan (@attorneyjeremy1) February 21, 2025
A follower then asked Hogan how much longer the case might take. Hogan estimated that it could wrap up between April and May, but he admitted that unexpected developments could influence the timeline.
It bears mentioning that in its bid to be fairer to the crypto industry, the new SEC leadership has either dropped or suspended other cases as well. A week ago, the SEC froze its case against Binance. The agency also withdrew an ongoing appeal to a ruling barring its control over DeFi protocols.
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