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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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The ongoing Ripple lawsuit continues to stir speculation, with legal experts weighing in on the potential outcome. Attorney Jeremy Hogan recently provided insight into the case’s delay, citing complications surrounding the court’s injunction against Ripple’s direct sales of XRP to customers.
His comments came in response to legal analyst MetaLawMan, who theorized that Ripple might push for a better settlement deal with the SEC to vacate Judge Torres’s decision.
These legal developments unfolded just as former President Donald Trump made a groundbreaking announcement, establishing a U.S. Crypto Strategic Reserve featuring Bitcoin, Ether, XRP, Solana, and Cardano.
The revelation triggered a market rally, with XRP surging over 24%.
Ripple Lawsuit: The Legal Hurdles and Possible Outcomes
Attorney Jeremy Hogan outlined the complexities of resolving Ripple’s case, pointing to Judge Torres’s injunction as the primary hurdle.
This injunction prohibits Ripple from directly selling XRP to customers, creating a significant challenge in negotiating a settlement.
Hogan explained that while the SEC and Ripple might reach a mutual agreement, dissolving a court-issued injunction is not a straightforward process.
He cited Rule 60 of the Federal Rules of Civil Procedure, which states that a court cannot simply overturn its judgment unless new legal circumstances emerge.
Ripple’s challenge is to persuade Judge Torres to lift the injunction despite her ruling being based on the longstanding Howey test rather than SEC regulatory policies.
One potential path forward involves Ripple and the SEC petitioning the court to vacate the injunction. If Judge Torres finds the reasoning compelling, she could grant the request, allowing Ripple to resume direct XRP sales without legal restrictions.
However, this approach requires careful legal maneuvering, as the judge makes the final decision.
As Hogan claimed, Ripple only has one chance to file this motion, so it must be meticulously crafted and include SEC approval for the best chance of success.
Legal analyst MetaLawMan speculated that Ripple might be pushing for a deal that removes the injunction and any “bad boy” provisions from Judge Torres’s ruling.
He suggested that the SEC would likely have agreed to a simple $125 million settlement and dismissal of the case, but Ripple appears to be holding out for more favorable terms.
If Ripple succeeds, it could lead to future securities offerings or even an IPO, solidifying its standing in the financial sector.
Trump’s Crypto Reserve Sparks Market Surge
The legal battle surrounding Ripple coincided with former President Donald Trump’s decision to form a U.S. Crypto Strategic Reserve, which will include Bitcoin, Ether, XRP, Solana, and Cardano.
Trump’s announcement led to a sharp rally in the crypto market. Bitcoin jumped 8% to $93,007, while Ether surged 9.7% to $2,438. XRP, which was directly impacted by the news, skyrocketed 24.5% to $2.80.
Other major cryptocurrencies, including Solana (+18.7%), Cardano (+58.8%), and Dogecoin (+10.7%), also saw substantial gains.
Despite the market optimism, Trump’s policy has sparked debate among financial experts. While some, including Eric Trump, hailed the initiative as a genius move that favors retail investors over traditional financial institutions, critics warned of potential volatility.
Some argue that diversifying the reserve across multiple cryptocurrencies, rather than focusing solely on Bitcoin, could introduce unnecessary risks, just like Brian Armstrong advised.
What Comes Next for Ripple and XRP?
With Ripple negotiating a potential settlement and Trump’s pro-crypto policies bringing back optimism, the coming months will be crucial for XRP’s trajectory.
If Ripple successfully lifts the injunction, it could restore investor confidence and open new business opportunities, possibly even positioning the company for an IPO.
However, if the court maintains the restriction, Ripple’s ability to conduct direct sales will remain limited, affecting its long-term growth.
