XRP Lawsuit: Both Sides May Drop Appeals, Settle ~$50M

XRP Lawsuit: Lawyer Predicts Ripple and SEC to Drop Appeals

A prominent crypto defense lawyer has predicted that both Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are likely to drop their respective appeals in the high-profile XRP lawsuit, potentially paving the way for a settlement around $50 million.

Attorney Fred Rispoli shared his perspective on social media, stating that both sides are now highly likely to end the appeals process. This comes after Ripple and the SEC jointly submitted a procedural motion requesting Judge Analisa Torres to reconsider the final judgment that imposed an injunction on Ripple’s institutional XRP sales.

Legal Background

Judge Torres previously ruled that while Ripple’s programmatic sales and other distributions of XRP did not constitute securities transactions, the company’s institutional sales did violate securities laws. The ruling resulted in a penalty of $876 million, later reduced to approximately $125 million, and an injunction restricting certain activities.

Ripple and the SEC are now seeking to further reduce the penalty to $50 million and eliminate the injunction. According to Rispoli, the supplemental filing corrected earlier procedural deficiencies, making the approval of this motion more likely.

Timeline and Next Steps

If Judge Torres issues what is known as an “indicative ruling” in favor of the motion, the case will be remanded by the Second Circuit Court of Appeals. Once remanded, Judge Torres would have the authority to grant final relief, including lifting the injunction and confirming the reduced penalty.

Rispoli believes this process could conclude relatively quickly, with both parties dismissing their appeals within weeks after the indicative ruling is issued. He added that the probability of this outcome now stands at over 50 percent, describing the timing as “imminent.”

Implications for XRP and the Market

A final resolution of the lawsuit would remove significant legal uncertainty that has surrounded XRP for years. Market participants have been watching the proceedings closely, as the outcome could impact broader regulatory approaches to digital assets in the United States.

If Ripple and the SEC ultimately settle and drop appeals, it would mark the end of one of the most closely watched enforcement actions in the crypto industry.