**Ripple’s Legal Battle with SEC: $125M Fine Likely to Stand Amid Delays**
– **Attorney Fred Rispoli believes Ripple may have to pay the full $125 million fine since the SEC is stalling further decisions, possibly awaiting new leadership.**
– **The lawsuit, ongoing since December 2020, stems from the SEC’s claim that Ripple engaged in an unregistered securities offering.**
### Legal Uncertainty Surrounding Ripple’s Case
Legal analysts suggest that Ripple Labs’ prolonged dispute with the U.S. Securities and Exchange Commission (SEC) is unlikely to see significant changes, with the $125 million judgment against Ripple expected to remain in place.
Attorney Fred Rispoli theorizes that the SEC is delaying further action, potentially waiting for Paul Atkins to assume leadership before making any final rulings. Currently, Interim SEC Chair Mark Uyeda is overseeing operations following Gary Gensler’s departure.
Despite dropping lawsuits against other crypto firms such as Uniswap, Coinbase, Kraken, and ConsenSys, the SEC remains steadfast in its case against Ripple. The agency has also set up a dedicated cryptocurrency task force, spearheaded by SEC Commissioner Hester Peirce, to balance regulation with industry innovation.
In August 2024, Judge Analisa Torres of the U.S. District Court for the Southern District of New York issued a decision with mixed outcomes. She ruled that Ripple’s institutional sales of XRP were securities transactions, but its programmatic sales to retail investors were not. This led to a $125 million fine for institutional transactions—significantly lower than the SEC’s initial demand of $2 billion. Rispoli commented, “Yes, I’m saying I bet there are significant discussions on having this penalty reduced or waived.”
### Could Ripple Use XRP to Settle the Fine?
Ripple retains a substantial portion of its XRP supply in escrow, strategically releasing limited amounts to maintain price stability and prevent market overflows. Presently, the company holds 37.1 billion XRP, contributing to speculation that it might use these assets to settle its fine—potentially laying the groundwork for a U.S. digital asset reserve.
Crypto analyst Yassin Mobarak weighed in on this theory, stating:
> “The government has an incentive to agree to this because, for the first time in history, the U.S. government would own XRP and therefore be incentivized to let its value grow over time. That would remove the shackles that prevented XRP from being used in the U.S., allowing it to finally assume the utility it was created for. This, in turn, would lead to positive price movements.”
The legal battle has now moved into the appellate phase, with the Second Circuit Court of Appeals reviewing the case. The SEC filed its appeal brief on January 15, outlining its arguments against the prior ruling, while Ripple has until April 16 to submit its counterarguments.
### Market Reaction: XRP’s Price Volatility
Amid ongoing legal uncertainties, XRP has seen noticeable price fluctuations. Over the past week, the digital asset gained **8.95%**, yet it dropped **5.61%** in the past day, bringing its current trading price to **$2.36**.
As court proceedings continue, the outcome of Ripple’s legal battle with the SEC will likely have significant implications for the broader cryptocurrency industry and regulatory landscape in the United States.