Ripple Vs. SEC: Lawyer Envisions Settlement Twist & Coinbase

James “MetaLawMan” Murphy, a legal expert in digital assets and Web3, suggests that the lawsuit between the United States Securities and Exchange Commission (SEC) and blockchain firm Ripple could settle. At the same time, the SEC might face a loss in its case against the American exchange Coinbase.

During an interview on the ‘Thinking Crypto’ podcast on Feb 10, Murphy highlighted the possibility of a settlement in the SEC’s lawsuit against Ripple. He suggested that the influence of the 2024 election year and the change in management at the agency could play a role in this potential resolution.

Murphy emphasized the distinction between acquiring XRP and purchasing shares in companies like Amazon, asserting that the latter falls under security. He affirmed that US District Judge Analisa Torres made an accurate ruling in favor of Ripple by acknowledging the partial victory and recognizing the classification of the blockchain company’s sale of XRP tokens to institutions as a security.

Murphy stated that the SEC and Ripple plan to appeal as the legal proceedings continue. However, the SEC contends that numerous institutional sales occurred beyond the regulatory jurisdiction.

SEC’s Coin Flip: Ripple Fate Uncertain

Moreover, Murphy pointed out that one aspect that captivates him is the fact that this is an election year, and there is the potential for significant changes,

The election’s outcome has the potential to alter the SEC, leading to a shift that may not only impact Ripple but also result in a distinct counterparty dynamic in this legal dispute. However, This could heighten the likelihood of a more amicable settlement being pursued in various cases.

Murphy emphasized that the SEC permitted Coinbase to become publicly traded in 2021. He urged Congress to empower the agency with the capability to oversee cryptocurrency exchanges.

Two years later, he makes a strategic shift and takes legal action against Coinbase, alleging their failure to register as a broker-dealer and clearing agency according to the existing SEC regulations for Nasdaq and the New York Stock Exchange,” highlighted Murphy.

Expressing confidence in Coinbase’s eventual success, MetaLawMan mentioned that the upcoming 2024 elections could usher in a new SEC Chair, potentially leading to changes in the digital asset sector.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.