The U.S. Securities and Exchange Commission (SEC) has officially dropped its appeal against Ripple, aligning with its recent actions in cases involving Coinbase and Kraken. Despite the appeal being dropped, Ripple still faces a pending cross appeal and an unresolved $125 million fine. This development could allow Ripple to renegotiate terms.
On the Thinking Crypto podcast, attorney Fred Rispoli discussed whether Ripple would attempt a cross appeal to reduce or eliminate the $125 million fine. He indicated that Ripple is likely considering this option. Rispoli emphasized that federal agencies, like the SEC, often base their decisions on political factors, which has become a longstanding issue. The case’s complexity has resulted in Ripple advancing further than companies like Coinbase or Kraken, allowing them to push back rather than settle.
Rispoli also discussed the potential outcome of the $125 million fine, suggesting it could be significantly reduced to around $10 to $12 million—an amount Ripple had initially proposed. He interpreted the SEC’s decision to drop its appeal as a sign that negotiations may have already occurred. In exchange for Ripple’s cross appeal, the SEC might agree to reduce the fine or make other concessions, such as lifting operational injunctions on Ripple, thereby enabling the company to proceed without further regulatory limits.
Looking ahead, Rispoli speculated that Ripple might ultimately drop their cross appeal in return for a lower fine and a written agreement clarifying that Ripple’s activities comply with the SEC’s rules. He suggested a high possibility of an agreement that would clear Ripple’s path for future operations, including raising capital and potential public offerings.
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