The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is approaching its final stages, with the SEC's vote on dismissing its appeal being the pivotal moment.
The SEC's Critical Decision
Ripple has already taken significant steps towards resolving the case, including agreeing to drop its appeal regarding the court's previous ruling on XRP's institutional sales and depositing a $125 million civil penalty into escrow. However, the case remains unresolved as the SEC still holds the key to its conclusion.
Bill Morgan, a legal expert, clarified that the real obstacle is the SEC's formal decision to dismiss its appeal. While Ripple has indicated it will drop its appeal, the SEC commissioners need to vote to dismiss theirs.
What Happens If the SEC Votes to Dismiss the Appeal?
If the SEC votes to dismiss its appeal, the outcome could be game-changing for Ripple. The company would regain the freedom to continue its operations with institutional XRP sales without legal uncertainty.
Also, the escrowed fine of $125 million would be discharged to the U.S. Treasury, and over 1,700 confidential contracts related to Ripple could subsequently be disclosed. This ruling would also set a critical legal precedent for future cryptocurrency regulations.
Conclusion and Next Steps
For now, the fate of the case rests in the hands of the SEC commissioners. A vote to reject their appeal would bring an end to one of the most closely followed legal cases in the cryptocurrency space, enabling Ripple to move past this challenge.
The significance of the SEC's upcoming decision cannot be overstated, as it could lead to transformative changes in cryptocurrency regulation in the U.S. and beyond.
