SEC Drops Crypto Lawsuits but Keeps Ripple Case Alive – Why?

The U.S. Securities and Exchange Commission (SEC) has recently dropped lawsuits against several major crypto firms, yet Ripple remains an exception, keeping the XRP case in the spotlight.

The agency officially dismissed cases against Kraken, Cumberland, and Consensys, raising questions about why Ripple was left out. Fox Business journalist Eleanor Terrett addressed this issue on X, offering insights into the SEC’s ongoing legal battle with Ripple.

Eleanor Terrett highlighted in a recent post that the SEC’s decision to exclude Ripple while settling with other firms was not unexpected. She noted that Ripple’s legal situation differs from the other cases, making its resolution more complex.

One key distinction is the presence of an existing injunction against Ripple, which the SEC must navigate before withdrawing its appeal. To proceed, the agency would need to request Judge Torres to lift the injunction, a necessary step before moving forward with a potential resolution.

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The SEC’s decision to dismiss cases against Kraken, Cumberland, and Consensys was made official through joint stipulations, ensuring these lawsuits cannot be refiled. Importantly, the dismissals came without financial penalties for the firms. However, the regulator made it clear that these decisions do not indicate a shift in its broader stance on cryptocurrency regulation.

Despite these dismissals, the XRP case remains unaffected. Legal expert Fred Rispoli recently weighed in on the matter, predicting that the Ripple lawsuit could reach a settlement within the next two months, though several procedural steps must still be completed.

Alexander Stefanov