Former White House officials say the SEC dropped the Ripple incident

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Former White House communications director Anthony Scaramucci suggests that the SEC has filed a lawsuit against Ripple.

Scaramucci made this bold claim in a recent interview with the Wolf Wolf Podcast. During the interview, Scaramucci and podcast host Scott Mercer spoke about Donald Trump’s pro-crypto scheme and industry regulatory framework.

Will the SEC stop the Ripple lawsuit?

They also discussed other events, particularly the SEC’s decision to stop litigation against crypto-related businesses. In particular, Mercer highlighted some of the legal measures the SEC removed. This includes Consency, Gemini, Uniswap, Coinbase and Robinhood.

However, Scaramuci suggested that there was a need to intervene and add ripples to the list. In response, Mercer echoed “Yeah, yes,” implying that the SEC may have dropped its ripple lawsuit.

Despite this claim, the SEC has not formally announced its decision regarding the Ripple case, as it remains in the Court of Appeals in the Second Circuit.

This happens when the SEC suspends and dismisses lawsuits against top crypto companies, including Binance and Kraken. The SEC requested ripples as early as December 2020, but the incident is still ongoing.

Ripple case delay factor only

Legal experts suggest that the July 2023 ruling complicates the SEC’s ability to dismiss the Ripple case. Remember that the judge ruled that Ripple’s programmatic sales and other distributions of XRP were not securities. However, she discovered that Ripple violated the law through its initial sale to institutional investors.

The following year, the judge condemned a $125 million fine against Ripple for the violation, and then imposed an injunction that prevented the company from selling to institutional investors without the consent of the SEC.

In a recent X-thread, Attorney Jeremy Hogan, a partner at Hogan & Hogan Law Firm, identified the injunction as the main reason the SEC has not yet withdrawn its appeal. He highlighted the difficulty of overturning the appeal, noting that such measures could expand the case to April or May 2025.

He dismissed the possibility of overturning the appeal through Rule 60 of the Federal Rules of Civil Procedure. According to him, the only way Ripple can overturn this judgment is to work with the SEC to submit a “carefully expressed move.”