What's Next in the Ripple Vs SEC Saga?

The Ripple-SEC saga seems far from over, but the possibility of a settlement or reduced fine could be on the table, as discussed by legal experts.

Legal experts are discussing the possibility of a settlement or reduced fine in the Ripple-SEC case, despite its ongoing nature.

Attorney Jeremy Hogan recently brought up an interesting point about the case in a conversation with John Deaton and James Murphy, particularly regarding the potential for a settlement. He questioned whether Ripple would pay the $125 million fine that a trial-level court had proposed. Hogan highlighted the awkwardness that could arise if Ripple were to settle for a smaller amount, especially if the SEC were to accept a lesser fine, as this would contradict the court's earlier judgment.

James Murphy, a legal expert, responded to this by suggesting that Ripple might have some leverage in this situation. He mentioned the ongoing cross-appeal, which challenges the lower court's ruling that Ripple's XRP sales to institutional investors constituted "investment contracts" under securities law.

According to Murphy, this argument is strong and can be compared to the Howey case, in which a company sells oranges to wholesalers at a discounted price, and those wholesalers then resell the oranges for a profit. He maintains that even though these transactions involve large sums of money, they are still just sales of a commodity and not an investment in the company itself. He suggested that Ripple could use this analogy to have the fine reduced, especially since the court's summary judgment did not pay much attention to this aspect.

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