After nearly four years of intense legal conflict, the US Securities and Exchange Commission (SEC) officially filed a letter to the settlement agreement in its case against the Ripple Labs. As the XRP community celebrates this major development, legal experts warn that the case is not yet complete.
According to Attorney James K. Filan, even though both parties are in line with the terms of the regulating, Judge Analy Torres must first decide whether the deal is in public interest. Only after that decision is the case finally close.
What will happen next? The 4 main steps left
Here's a breakdown of four big steps that still need to happen before Ripple can claim the total success:
- Judge Torres will review the negotiation and make an initial decision on whether the existing injunction is dissolved, release the escrow funds – with $ 50 million going to the SEC and the rest will return to Ripple.
- If the judge agrees, both the Ripple and the SEC will be asked the second circuit court of appeals for a limited remand, returning the case to Judge Torres to finish the agreed actions.
- When the remand is granted, the two parties will file a joint motion requesting the official actions – melting the injunction and distribution of funds.
- After completing these steps, Ripple and the SEC will ask the Court of Appeals to remove both the SEC appeal and Ripple's cross-appeal, officially closing the case.
The XRP community is strong
Bill Morgan's lawyer has pointed out that most of the public affected by this case are XRP holders. He said more than 80,000 XRP holders joined the lawyer John Deaton in representing their interests in this legal fight, and there was no record of even an XRP holder supporting the position of the SEC.
Morgan believes that the public's excessive support will help convince the judge that the melting of the injunction and repairing a $ 50 million fine is in public interest.
Will the judge agree?
While many XRP supporters are excited, not all are sure about the outcome. Former SEC attorney Marc Fagel said Judge Torres' earlier decision on Ripple's institutional sales is likely to be promoted by higher courts. He warned that if the judge rejected the negotiation, it was unclear whether the SEC would continue to defend the appeal case.
However, others in the XRP community are confident that Judge Torres is likely to approve the negotiation. Some points to changing the bearing of US regulators towards the crypto, along with Ripple's stronger legal position in appeal courts.
