After a lengthy legal battle lasting over four years, the lawsuit between **Ripple** and the SEC may finally come to an end. Both parties have filed a joint motion to settle. **Ripple** plans to release $125 million from escrow, with $50 million designated as a civil penalty for the SEC and $75 million to be returned to **Ripple**. The aim is to swiftly conclude the matter without further delays or appeals.
Attorney **John Deaton** predicts a 70% chance of Judge Analisa Torres approving the settlement. He addressed a comment accusing him and Fred Rispoli of suggesting that **Ripple** and the SEC should have praised Judge Torres excessively in their filing. **Deaton** clarified that he neither anticipated flattery nor strongly criticized the involved lawyers. Instead, he expected the SEC to acknowledge its past aggressive stance towards crypto, especially in light of previous court decisions criticizing its actions as “arbitrary and capricious.”
In **Ripple**’s case, Judge Netburn stated that the SEC “lacked faithful allegiance to the law.” **Deaton** anticipated the filing would reference these issues and emphasize upcoming crypto regulations like the Clarity Act and Genius Act as reasons to settle and progress.
**Deaton** also highlighted the unfairness **Ripple** would face under an injunction while the rest of the crypto industry moves towards clarity. He pointed out that companies like Circle would gain an advantage, as banks prefer to engage with businesses not under legal scrutiny. He stated that the filing needed a stronger argument to persuade the judge to reverse her resolute ruling, rather than relying on a few cases for justification. His next update will provide an impartial analysis of both sides.
Legal professionals, including attorney Fred Rispoli, questioned the relevance of the injunction if the SEC could grant **Ripple** a waiver to bypass it. Former SEC official Marc Fagel expressed doubts about the SEC’s latest filing, deeming its focus on elections and policy shifts as weak legal grounds.
Commenting on the joint motion between **Ripple** and the SEC, Bill Morgan opined that while the motion may not become more convincing upon repeated readings, he believes the judge will likely approve it nonetheless.
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