Ripple-SEC Deal Faces Doubts as Legal Expert Flags Timing

• Ripple reports SEC deal to cut penalty and end case, but final commission approval is pending
• Crypto lawyer Bill Morgan flags ‘odd’ timing, noting SEC has yet to formally sign off
• XRP price falls 11% this week as uncertainty clouds Ripple’s litigation status

FinTech company Ripple appears to be celebrating what it considers a victory in the ongoing litigation with the SEC. 

For the first time, Ripple explicitly referenced the details of an agreement with the SEC on the final steps to ending the longstanding litigation that has significantly impacted XRP, the XRP Ledger’s native token.

Crypto Lawyer Notes ‘Odd’ Timing

However, not everyone is convinced the end is definitively here yet. In a post on X, renowned crypto lawyer Bill Morgan cited a segment of Ripple’s Q1 2025 report containing information about the case. 

Despite acknowledging Ripple’s forwardness in publicly reporting the agreement with the SEC, Morgan sensed something odd about the report, considering the SEC commissioners have not voted on the issue.

What Ripple Reported About the SEC Agreement

For context, Ripple reported receiving information from the SEC about their intention to withdraw its appeal. In turn, Ripple agreed to withdraw its own cross-appeal. 

Following this, Ripple stated the SEC agreed to reduce its proposed penalty from $125 million to $50 million, with a request for the court to vacate the injunction. Crucially, Ripple noted these steps are pending final approval by the SEC Commission.

Related: XRP Rebound Potential: Ripple SEC Case Breakthrough & Trump’s Crypto Mention Spark Price Recovery Hopes

Lack of SEC Confirmation Creates Uncertainty

This situation, where Ripple reporting specific deal terms while the SEC leadership hasn’t officially signed off, creates some ‘greyness’ as Morgan observed. 

Despite many analysts suspecting Ripple to be reporting from an insider’s perspective, with the reports likely true, the broader crypto community expects a substantive statement, especially from the SEC.

High Stakes for Ripple and XRP

Morgan’s concern lies in the extent of Ripple’s forwardness in reporting the issue when it has not fulfilled the due process. Perhaps there is a turnaround by the SEC from the acclaimed agreement, which could significantly affect Ripple’s business, with a notable effect on XRP despite many years of struggle.

Related: Ripple Scraps XRP Reports Post-SEC Case, Switches to Flexible Disclosure

However, a substantive statement from all the parties involved, including the SEC, would potentially boost the brewing positive energy within Ripple’s ecosystem, directly affecting XRP’s demand. The cryptocurrency traded for $2.0991 at the time of writing, losing over 11% of its value from the last week of April, according to data from TradingView.