Legal Expert Claims Ripple Has Leverage to Settle for Less Than $125 Million

The Ripple-SEC saga seems far from over, but the possibility of a settlement or reduced fine could be on the table, as discussed by legal experts. Attorney Jeremy Hogan recently discussed an interesting aspect of Ripple’s ongoing legal battle with the SEC, particularly regarding the possibility of a settlement. 

In an interaction with John Deaton and James Murphy, he raised the question of whether Ripple would pay the $125 million fine that was proposed by a trial-level court. Hogan pointed out the awkwardness of the situation if Ripple were to settle for a smaller amount, especially if the SEC were to accept a lesser fine, as this would undermine the judgment made by the court. 

James Murphy, a legal expert, responded to this by suggesting that Ripple could have some leverage in this situation. He pointed to the ongoing cross-appeal, which questions whether Ripple’s sales of XRP to institutional investors were actually “investment contracts” as defined by securities law. 

Murphy believes that this argument has merit, comparing it to the case of Howey, where a company sells oranges to wholesalers at a discounted price, and those wholesalers resell the oranges for a profit. According to Murphy, even if these transactions involve large sums of money, they’re still just sales of a commodity, not an investment in the company itself. He argued that Ripple could use this analogy to reduce the fine, especially since it wasn’t given much attention in the court’s summary judgment.

What’s Next in Ripple Vs SEC?

The outcome of the Ripple-SEC case and other major crypto lawsuits may depend on changes in SEC leadership. There is growing speculation that Gary Gensler, the current SEC chairman, could resign soon due to rising political pressure. Legal experts believe that 2025 might be the year many of these cases are resolved