Ripple v. SEC Lawsuit News Update: Is a Resolution on the Horizon?

TL;DR

Leadership changes at the SEC, including Gensler’s exit and key reassignments, could signal a reduced penalty or resolution for Ripple.
Contrary to speculation, no official settlement has been reached, with experts calling the case more complex than other crypto lawsuits.

What’s New?

Despite dropping or pausing many of its lawsuits against crypto businesses, the US Securities and Exchange (SEC) keeps confronting Ripple on the legal front.

Over the past several months, the dispute has seen numerous developments that may change its course and indicate that its final resolution might be imminent.

One example is the departure of the former anti-crypto Chairman Gary Gensler. He stepped down on January 20 and was succeeded by Mark Uyeda, who has an entirely different stance on the digital asset industry.

A few months ago, US President Donald Trump appointed Paul Atkins to take the helm at the agency. However, he should first receive the Senate’s confirmation. The popular attorney, Fred Rispoli, believes that Ripple might be waiting for him to step in charge so he can potentially drop or reduce the previously ruled $125 million penalty on the company.

Recall that Judge Torres ordered the firm to pay the amount for violating certain rules. The sum represented just a fraction of the $2 billion the SEC initially asked for, and Ripple’s execs were ready to pay the fine. However, the Commission filed a last-minute appeal in October 2024, thus prolonging the case indefinitely.

Gensler’s departure is not the only change in the SEC’s leadership. Not long ago, the regulator transferred one of its top crypto litigators – Jorge Tenreiro – to its IT division. He joined the watchdog more than a decade ago and signed the aforementioned notice of appeal against Ripple.

John Reed Stark (former director of the SEC Internet Enforcement Office) recently claimed that Tenreiro’s allocation could be one of the reasons why the Commission might soon pause or fully withdraw all of its appeals against crypto entities.

“Yet, this SEC trial lawyer, who championed the victories of Coinbase and Binance, is now glaringly absent from both the Coinbase and Binance pleadings, ordered to pack his pencils and legal pads and transfer to the SEC’s IT department,” Stark stated.

Have We Missed the End?

Another well-known individual who recently touched upon the Ripple v. SEC lawsuit is Anthony Scaramucci. Earlier this month, the former White House official took part in an interview, placing the legal battle among those that the regulator has already dismissed. The host of the conversation, Scott Melker (known as The Wolf of All Streets), agreed with this assumption.

However, no official information shows that the two entities have shaken hands on a mutual agreement or reached a settlement.

In fact, some legal experts have predicted that the resolution will not be that simple, claiming that this battle is much more complex than the rest involving the SEC and crypto entities.