The SEC is set to stop Coinbase’s litigation, but is the Ripple fight more complicated?

According to Fox Business Reporter Eleanor Terrett, the minutes in Ripple are more complicated than Coinbase. She noted that this is because they have already received orders from Judge Torres at the district level to pay a $115 million penalty.

Will the SEC appeal in the Second Circuit?

She said Judge Torres will oversee the case until August 7, 2025, and confirm that the penalty will be paid. Moreover, she also shared that the SEC may decide to withdraw the appeal in the Second Circuit, but said they would still need to understand how to handle penalty rulings in the district court. They can negotiate to reduce or remove the penalty and require the approval of Judge Torres to make it official.

She said there is some degree of uncertainty in all of this.

According to a recent update, the Securities and Exchange Commission (SEC) is planning to drop the lawsuit against Coinbase as approval from the agency’s commissioner is pending. If confirmed, this could be a key legal victory for the cryptocurrency industry and a turning point for future regulations.

According to Coinbase’s Chief Justice Officer, the SEC will soon vote for a contract to dismiss the lawsuit. If the vote passes, it does not only clarify the Coinbase of legal issues. It can also set an example for other crypto companies facing similar regulatory challenges.

Ripple vs SEC that will soon end?

Nevertheless, the XRP community believes that long-term lawsuits between Ripple and the US SEC could soon be over. This optimism comes after the SEC recently demonstrated openness to consider XRP Exchange-Traded Funds (ETFs). Experts suggest that the change indicates that the lawsuit is no longer relevant or is not a major concern.

On Thursday, the SEC approved the NYSE application listing Grayscale’s XRP ETFs, marking the first step in the approval process. This is important as it shows that the SEC may be open to considering XRP ETFs rather than completely rejecting them.

XRP ETF confirmation raises hope

Bloomberg analyst James Seyfert said the SEC under previous leadership likely rejected the XRP ETF application, particularly after rejecting a similar application for Solana in December. He believes this new development will slightly improve the ETF’s approval potential.

This change illustrates a change in the SEC’s approach under new leadership. Moreover, Nate Jelach, co-founder of the ETF Institute, noted that SEC approval could have a significant impact on the ongoing litigation against Ripple.