Anthony Scaramucci, former White House Director of Communications, recently suggested that the SEC may have dropped its case against Ripple.
Scaramucci made this statement during a recent episode of the Wolf of All Streets podcast. In a conversation with host Scott Melker, they delved into discussions about Donald Trump’s stance on cryptocurrency and the regulatory landscape within the industry.
Has the SEC Dropped the Ripple Lawsuit?
The conversation also touched upon the SEC’s decision to drop legal actions against various crypto-related companies. Melker highlighted dropped cases involving ConsenSys, Gemini, Uniswap, Coinbase, and Robinhood. However, Scaramucci suggested that Ripple should also be included in this list. Melker agreed, hinting at the possibility that the SEC may have indeed dropped the lawsuit against Ripple.
Despite these claims, the SEC has not officially confirmed the dismissal of the Ripple lawsuit, which is still ongoing in the Court of Appeals for the Second Circuit.
This development comes at a time when the SEC has been pausing and dismissing cases against major crypto entities like Binance and Kraken. Although the SEC initially charged Ripple back in December 2020, the legal battle persists.
The Key Factor Delaying the Ripple Case
Legal experts point to a ruling in July 2023 as a major obstacle for the SEC to drop the Ripple lawsuit. The Judge determined that Ripple’s distribution of XRP did not constitute securities, but found the company in violation for its initial sales to institutional investors.
Following this ruling, Ripple was fined $125 million, and an injunction was imposed to prevent the company from selling to institutional investors without SEC approval.
In a recent discussion on Twitter, Attorney Jeremy Hogan from Hogan & Hogan law firm highlighted the injunction as the primary reason why the SEC has not abandoned the appeal. He noted the challenges in overturning the ruling and suggested that any attempt to do so could prolong the case until April or May 2025.
Hogan dismissed the possibility of Ripple overturning the appeal through Rule 60 of the Federal Rules of Civil Procedure, indicating that collaboration with the SEC on a carefully crafted motion may be the only viable option for Ripple to overturn the judgment.