In a detailed post on social media platform X, Fagel explained that internal SEC procedures, rather than any ongoing negotiations, are behind the delay. According to him, drafting action memos, reviewing them through internal divisions, and scheduling commissioner votes are standard steps that take time. “That’s not the cause for delay,” he wrote, dismissing speculations of secret talks between Ripple and the SEC. 

SEC’s Bureaucratic Process Slows Ripple Lawsuit 

Fagel made it clear that the delay stems from bureaucratic obligations. The process begins with preparing an action memo, which then must be reviewed by relevant departments. Only after this review can it be placed on the calendar for a commissioner vote. This sequence, he noted, may take 1 to 2 months. 

Following the closed-door meeting on July 3, the community expected significant progress. However, no decision came out of the July 17 session either. Fagel emphasized that these meetings are routine weekly events with no direct link to the Ripple case. 

He also debunked rumors blaming Judge Torres or the SEC for intentionally stalling the process. “Nobody is holding up the case,” he said. Furthermore, he clarified that Ripple’s $125 million fine was paid in cash, not in XRP, and this does not signal the end of the case. The final resolution still depends on the SEC’s appeal status. 

Hope for a Quick Settlement Might Be Premature 

Despite Ripple dropping its appeal, which sparked hope for a swift resolution, Fagel remains skeptical. He warned the community against believing anyone claiming to know the exact timing, reiterating that no one truly knows when a settlement vote will be scheduled. 

In summary, the delay in the Ripple vs SEC case is not due to reluctance or negotiation tactics but rather the standard operational timeline within the SEC. The XRP community continues to wait for clarity, but expectations of a quick conclusion may be overly optimistic. 

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The post Why Is the Ripple vs SEC Settlement Still Delayed? appeared first on Coin Engineer.

The decision carries broad implications for the crypto sector and has the potential to set a precedent for future token classification lawsuits.

Institutional vs. Programmatic Sales: Court’s Distinction

The court made a clear distinction between institutional sales and programmatic (secondary market) sales of XRP. Judge Torres ruled that Ripple’s direct sales of XRP to institutional investors, totaling $728 million, did constitute an unregistered securities offering under U.S. law. However, the programmatic sales, which include transactions made by retail investors on crypto exchanges, were not deemed securities transactions.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

The court found that most retail buyers of XRP on exchanges were not investing directly in Ripple and were not expecting profits based on Ripple’s efforts, failing to meet the criteria for an investment contract under the Howey Test.

XRP Token Is Not a Security Itself

Judge Torres emphasized that XRP itself is not a security. She stated, “As a digital token, XRP is not in and of itself a ‘contract, transaction, or scheme’ that embodies the requirements of an investment contract under the Howey test.”

The court instead focused on the specific transactions and schemes involving the sale and distribution of XRP, rather than the token as an asset.

Will the SEC Appeal?

Although Ripple has won a crucial decision, the legal battle may not be over. The SEC is expected to appeal the ruling. If an appeal is filed, the case would move to the Second Circuit Court of Appeals, where both parties would present arguments and evidence for further review.

An appeal could result in either a reversal or further clarification of the legal standards applied to digital assets. If conflicting rulings emerge from different appellate courts, the case could ultimately be brought before the United States Supreme Court.

Impact on the Crypto Industry

This ruling is seen as positive news for the broader crypto community, particularly as the SEC has recently taken legal action against major exchanges like Coinbase and Binance, partly for allegedly offering unregistered securities. Legal experts suggest that the Ripple ruling could weaken some of the SEC’s arguments in these cases.

The decision also provides much-needed clarity regarding the regulatory framework surrounding digital assets, potentially offering relief to the crypto industry from mounting regulatory pressure. Analysts believe this ruling could boost investor confidence and shape future legal interpretations of how digital assets are classified.

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The post Critical Decision in Ripple Case: Is XRP a Commodity? appeared first on Coin Engineer.

Ripple Labs has formally requested an April 16 deadline for its cross-appeal brief in its ongoing legal battle with the SEC. This move is considered standard procedure.

Michael Kellogg, a member of Ripple’s legal team, stated in a January 23 filing that the company’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen, are also joining this request.

A brief deadline is the date by which a party must submit a written legal argument to the court. Typically, a brief is required within a specific period after the appealing party files its opening brief. The timeline, including a possible extension, depends on the specific court’s rules.

This development follows a January 15 filing from the SEC, where the commission argued that the New York District Court was wrong in ruling that XRP sold to retail investors were not considered securities. The SEC also argued that XRP provided as employee compensation and in business dealings should have been classified as a security. The New York District Court’s 2023 ruling was considered a partial victory for Ripple at the time.

Judge Torres later fined Ripple over $125 million for violating securities laws, considering that Ripple also offered XRP in institutional sales.

Will the SEC Drop the Ripple Case?

Ripple’s request has once again turned the spotlight on this ongoing and critical crypto court case. However, some expected the SEC to withdraw the case.

Jeremy Hogan, partner at Hogan & Hogan, commented on X:

“This is very standard. The SEC also had 90 days to draft its initial brief. The only question here is — will the brief need to be filed at all?”

Related tweet:

Many XRP supporters are asking the same question. Since January 20, the SEC has been led by acting Chair Mark Uyeda, who was appointed by President Donald Trump and is known to be crypto-friendly. The agency is reportedly considering dropping certain crypto enforcement cases.

During President Trump’s second term, his administration began embracing the digital assets space. The president followed through on his campaign promise to pardon Silk Road founder Ross Ulbricht, created a working group to explore a U.S. crypto reserve, and appointed David Sacks as the White House’s AI and crypto czar.

In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company violated securities laws through the sale of its XRP cryptocurrency. The legal battle has been ongoing since then.

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