Emma Nelson 
XRP Lawsuit: Why is the US SEC Delaying the Ripple Case Resolution?
As the US Securities and Exchange Commission (SEC) continues to navigate ongoing crypto lawsuits, the spotlight remains firmly on the high-profile XRP lawsuit involving Ripple Labs. While many in the industry anticipate an imminent settlement, legal experts, including MetaLawMan, suggest that the case resolution may face further delays.
Let’s explore the possible reasons behind the SEC’s delay in settling the XRP lawsuit, drawing insights from legal analysts and industry leaders.
Why is the SEC Postponing the XRP Lawsuit Resolution?
Under the leadership of President Donald Trump, the SEC has adopted a more crypto-friendly stance, aiming to encourage growth and innovation within the industry. This strategic shift is evident in the regulator’s progressive actions on Exchange-Traded Funds (ETFs) and its approach to resolving high-stakes crypto lawsuits. These developments have generated optimism among investors and market participants.
However, despite this seemingly positive direction, the long-awaited settlement of the XRP lawsuit remains uncertain. MetaLawMan, a prominent legal expert, has warned that the resolution of the Ripple vs. SEC case may be delayed, even as other crypto lawsuits reach their conclusions.
SEC
Insights from Legal Experts: MetaLawMan’s Perspective
In a recent post on X (formerly Twitter), James Murphy, better known as MetaLawMan, expressed caution about the potential delay in the SEC’s resolution of the XRP lawsuit. While the SEC recently concluded its investigation into Robinhood, speculation is growing about the possibility of an early settlement in the Ripple case.
However, MetaLawMan suggested that a resolution for Ripple might not be as imminent as anticipated. He further hinted that Ripple could be placed behind other high-profile cases involving Gemini, Kraken, and Binance in terms of reaching a final outcome.
This observation highlights the complexity of the XRP lawsuit, which stands apart from other crypto cases due to its unique legal and regulatory implications.
Complexities Surrounding Ripple vs. SEC: Why the Delay?
Earlier, MetaLawMan speculated that the XRP lawsuit could be settled before Ripple files its appellate brief on April 16, 2025. However, his recent statements suggest that a swift resolution is unlikely.
One of the key reasons behind the delay is the intricate legal landscape surrounding the Ripple vs. SEC case. Notably, Judge Analisa Torres’ XRP judgment and Ripple’s $125 million penalty add layers of complexity to the settlement negotiations.
MetaLawMan emphasized the challenges of negotiating a resolution, stating:
“The only reason I list Ripple last is the complexity involved in negotiating a resolution. Ripple is the only live crypto case with a final judgment in place. Therefore, the SEC and Ripple’s legal teams must negotiate how to handle the judgment and the funds escrowed for that judgment. This process takes time.”
This statement underscores the unique position of the Ripple case, which involves navigating legal precedents and financial penalties, making it a more complicated lawsuit compared to other crypto cases.
Conflict of Interest Allegations: Impact on the XRP Lawsuit
Adding to the complexity of the case are allegations of conflicts of interest within the SEC, which could be influencing the agency’s approach to the XRP lawsuit. These allegations stem from claims made by Empower Oversight (EO), a US government watchdog.
EO alleged that Bill Hinman, the former SEC Director, displayed bias against Ripple and XRP, particularly in his 2018 speech where he classified Bitcoin and Ethereum as non-securities. This classification has been controversial, with Ripple arguing that XRP should be given the same treatment as Ethereum.
The controversy deepens due to Hinman’s connections to Simpson Thacher, a law firm with ties to the Ethereum Alliance. EO claimed that Hinman received millions of dollars from the firm while working at the SEC, raising questions about potential conflicts of interest.
If the Office of the Inspector General (OIG) validates these allegations, it could significantly impact the XRP lawsuit, potentially pressuring the SEC to reconsider its position or even withdraw its appeal. This development could also affect the broader regulatory landscape for cryptocurrencies.
Ripple’s Position Amid Legal Challenges
Amid these legal challenges, Ripple continues to defend its position vigorously. Ripple Labs maintains that XRP is not a security and argues that the SEC’s enforcement actions have been inconsistent, particularly given the agency’s stance on Ethereum.
Ripple’s CEO, Brad Garlinghouse, has been vocal about the company’s determination to fight the lawsuit, emphasizing the broader implications for the cryptocurrency industry. Ripple’s legal team is also leveraging the Hinman controversy to strengthen its defense, arguing that XRP should not be classified as a security.
Influence of Coinbase and Robinhood Cases on XRP Lawsuit
The outcome of the XRP lawsuit could also be influenced by recent developments in other high-profile crypto cases. Notably, the SEC dismissed charges against Coinbase and concluded its investigation into Robinhood, signaling a shift from its previous “regulation by enforcement” approach.
Additionally, the SEC recently acknowledged XRP ETF applications submitted by investment firms including Grayscale, CoinShares, Canary Capital, 21Shares, and Bitwise. This acknowledgment represents a significant change in the SEC’s stance on XRP and reflects the growing acceptance of digital assets in the traditional financial market.
However, despite these positive signals, uncertainty continues to cloud the XRP lawsuit’s resolution. Jeremy Hogan, another prominent lawyer, remains optimistic, predicting that the Ripple case could be settled by April or May, potentially paving the way for the approval of an XRP ETF by the SEC.
Final Thoughts: What Lies Ahead for Ripple and XRP?
The XRP lawsuit remains one of the most closely watched cases in the cryptocurrency industry, with far-reaching implications for digital asset regulation. As the SEC navigates the complexities of the case, the outcome will likely shape the future of crypto regulations in the United States.
The allegations of conflicts of interest within the SEC, combined with the legal intricacies of Judge Analisa Torres’ ruling, create a challenging landscape for both Ripple and the SEC. However, the evolving regulatory environment, particularly the SEC’s changing stance on crypto ETFs, suggests that a resolution could be on the horizon.
For now, the market continues to speculate on the lawsuit’s outcome, with XRP’s price volatility reflecting investor uncertainty. The next few months will be crucial, as legal experts and industry leaders closely monitor the developments in this landmark case.
As the XRP lawsuit unfolds, it remains a pivotal moment for Ripple, XRP investors, and the broader cryptocurrency market. The resolution of this case could set a precedent for how digital assets are regulated in the US, influencing the future trajectory of the crypto industry.
