A settlement has been filed, but there are still four major steps remaining between XRP and victory

After nearly four years of intense legal battle, the Securities and Exchange Commission (SEC) has formally filed a settlement agreement in lawsuit against Ripple Labs. The XRP community is celebrating this major development, but legal experts warn that the incident is not yet completely over.

According to attorney James K. Philan, despite the parties agreeing to the terms of the settlement, Judge Analisa Torres must first decide whether the transaction will serve the public interest. Only after that decision will the case finally come to an end.

What happens next? The remaining four important steps

This is a breakdown of four big steps that Ripple still needs to occur before it claims a perfect victory.

1. Judge Torres will review the settlement, make an initial decision on whether to resolve the existing injunction and indicate whether to release the escrow fund.
2. If the judge agrees, both Ripple and the SEC will seek limited remand in the Second Circuit Court of Appeals, send the case back to Judge Torres, completing the agreed uprising lawsuit.
3. Once remand is permitted, the parties will file a joint complaint requesting official action – to resolve the injunction and distribute the funds.
4. Once these steps are complete, Ripple and the SEC will officially close the suit by asking the Court of Appeal to dismiss both the SEC appeal and Ripple’s cross appeal.

The XRP community is strong

Attorney Bill Morgan noted that the majority of the affected cases were XRP holders. He said that more than 80,000 XRP holders have joined lawyer John Deaton to represent their interests during this legal battle, and there is no record even for XRP holders supporting the SEC position.

Morgan believes this overwhelming public support will help convince judges that it is in the public interest to dissolve the injunction and settle down with a $50 million fine.

Does the judge agree?

Many XRP supporters are excited, but not everyone is sure of the outcome. Former SEC attorney Mark Fagel said Judge Torres’ previous ruling on Ripple’s institutional sales is likely to be upheld by the High Court. He warned that it is unclear whether the SEC will continue to defend the case on appeal if the judge refuses to settle.

Still, others in the XRP community are confident that Judge Torres is likely to approve the settlement. Some have pointed to a shift in the US regulator’s attitude towards Crypto along with Ripple’s stronger legal stance in the Court of Appeal.