- Ripple is pursuing a settlement with the SEC and an indicative ruling to clear the path for a future IPO.
- However, legal expert James Farrell warns that complex regulatory hurdles could delay resolution until 2027.
As the high-stakes legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) inches toward resolution, crypto lawyer James Farrell is shedding light on the complex legal and administrative steps that still lie ahead.
With the U.S. Court of Appeals granting a joint motion to suspend current appeals, both Ripple and the SEC have taken a pause to explore settlement discussions. Farrell reveals that Ripple is not only chasing a settlement but is also seeking an “indicative ruling” from Judge Analisa Torres—one that could significantly shape the company’s future, particularly a potential IPO.
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“Ripple wants to modify Judge Torres’ judgment to permit private XRP sales,” said Farrell. “Without that modification, the path to an IPO within the next few years is essentially blocked.”
The proposed ruling would provide legal clarity and potentially remove regulatory overhangs that have cast doubt over Ripple’s market activities. However, Farrell warns that while a settlement may be within reach, the indicative ruling introduces a more tangled legal scenario.
Ripple could submit the settlement offer and indicative ruling request either jointly or separately to the SEC. If the SEC agrees, Ripple must then file a motion before Judge Torres. Farrell estimates this stage alone could take up to six months. Should Judge Torres deny the modification request, both parties may return to the Appeals Court, with litigation potentially stretching into early 2027.
Despite the legal fog, the strategic move to pause appeals and open dialogue hints at a shared desire to bring closure to the long-running XRP lawsuit. But as Farrell underscores, regulatory complexities and procedural intricacies could delay the final resolution far longer than Ripple and its investors would like.
For now, all eyes remain on the courtroom as Ripple and the SEC navigate the final stretch—one filled with legal landmines, high stakes, and the future of XRP hanging in the balance.
