Lawsuit against Cumberland DRW in the digital currency trading realm has been abandoned by the Securities and Exchange Commission (SEC)
In a significant turn of events, the U.S. Securities and Exchange Commission (SEC) has decided not to dismiss the Ripple case, despite the similar arguments for appeal in the Coinbase interlocutory appeal that the agency has already dropped.
The SEC's decision affects several cryptocurrencies, including Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL), as these assets are involved in the case. Ripple, on the other hand, only has one opportunity to get the injunction dissolved, with the trial court.
The SEC might argue that its ongoing efforts to revise crypto regulations could make the injunction unnecessary. However, the challenge lies in the fact that the court's decision was based on the Howey test, a legal standard set by the U.S. Supreme Court, which SEC rule changes cannot override. Under Federal Rule 60, a court ruling can only be changed if circumstances have significantly shifted.
The exact date of Judge Analisa Torres' court ruling in the SEC vs. Ripple Labs Inc. case is not specified in the available search results. Jeremy Hogan, a partner at Hogan & Hogan and a prominent legal figure in the cryptocurrency sector, has provided insights into the ongoing Ripple case.
Meanwhile, the SEC has reached a preliminary agreement to drop its case against Cumberland DRW, the crypto trading arm of Chicago-based DRW, which was accused of operating as an unregistered securities dealer while handling over $2 billion in digital assets. Cumberland contended that it had registered as a dealer-broker in 2019 and had engaged in years of discussions with the SEC before being targeted with legal action.
As for the Ripple case, a decision might come by May, though appeals could be dropped as early as April. The delay in resolving the case may be attributed to the injunction included in Judge Analisa Torres' ruling. Notably, the SEC has previously dropped legal actions against major exchanges, including Coinbase and Kraken.
Jeremy Hogan predicted that both parties might agree and dismiss their appeals, allowing Ripple to file a motion with the trial court. As of January 31, 2025, there have been no new developments in the ongoing Ripple case. Ripple CEO Brad Garlinghouse had a meeting with President Donald Trump prior to his inauguration, but the implications of this meeting for the case remain unclear.
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