XRP Lawsuit Update: Ripple Faces New Hurdles as Oregon AG Calls XRP Security

Key Insights:

• Ripple seeks a settlement and an indicative ruling in the XRP lawsuit to enable a future IPO launch.
• The US Court of Appeals paused Ripple and SEC appeals, granting time for settlement talks in the XRP lawsuit.
• Oregon AG sued Coinbase, alleging XRP and 30 other tokens are unregistered securities under state law.

Ripple Labs’ long-running XRP lawsuit continues to evolve as new developments emerge. The XRP company is actively pursuing a settlement and an indicative ruling to enable a future IPO.

Ripple and the Securities and Exchange Commission (SEC) began settlement negotiations after the United States Court of Appeals decided to halt all pending appeals.

Concurrently, Oregon’s Attorney General filed a lawsuit against Coinbase regarding XRP alongside multiple other tokens after declaring them unregistered securities.

The recent developments increase the difficulty facing Ripple in its efforts to settle its XRP lawsuit while pursuing public listing prospects.

Ripple Pursues XRP Lawsuit Settlement and Indicative Ruling

Ripple Labs is seeking to settle its legal battle with the US SEC while requesting an indicative ruling from the District Court.

This move is essential for the company’s plans to conduct private sales of XRP, a step viewed as critical for a future initial public offering (IPO).

Attorney James Farrell explained that Ripple requires the court to modify its existing judgment to allow these private sales.

Without this modification, Ripple’s path to a public market debut would likely be delayed for several years.

To achieve this, Ripple intends to submit a settlement offer to the SEC and request Judge Analisa Torres issue an indicative ruling.

If the SEC agrees to the settlement terms, Ripple will then proceed to file a formal motion with the District Court.

According to Farrell the District Court needs about six months to issue its decision and the subsequent dismissal appeals through the appellate level would require approximately one month.

However, the continuation of the legal battle by Ripple toward XRP may stretch until 2027 in case Judge Torres rejects their request for modification.

US Court Pauses Ripple and SEC Appeals

The US Court of Appeals offered Ripple and the SEC a mutual agreement to suspend both their simultaneous appeals.

The decision allowed Ripple and the SEC to focus on settlement talks while removing the urgency associated with continuing appellate proceedings.

Additionally, the court demanded that the US SEC report its progress toward settlement terms to the court through periodic filings within sixty days.

The court’s move demonstrates support for out-of-court settlements between these parties instead of maintaining an extended appeals process.

The digital asset industry continues to watch the XRP lawsuit, especially after recent settlement developments drew market attention.

The value of XRP responded to ongoing legal developments in the market. The top altcoin maintained its strong position by holding at $2.18 despite the prevailing market uncertainty.

More so, analysts expect the altcoin price to break out once the XRP lawsuit resolves.

Oregon Attorney General Files New Lawsuit Naming XRP as a Security

While Ripple is negotiating with the US SEC, a new lawsuit filed by Oregon Attorney General Dan Rayfield adds further legal scrutiny over XRP.

The lawsuit, filed against Coinbase, claims that XRP and more than 30 other digital tokens are unregistered securities under Oregon state law.

This action introduced a fresh challenge for Ripple, even as it nears resolution of the XRP lawsuit.

According to the Oregon Department of Justice, the lawsuit is part of efforts to fill what it describes as a regulatory vacuum left by federal agencies.

The complaint against Coinbase mirrors earlier federal enforcement actions and revives arguments that had been settled after the US SEC dropped its case against Ripple earlier this year.

Legal Action and Broader Implications for XRP

Multiple legal experts, together with investors, criticized the Oregon Attorney General’s lawsuit.

John Deaton, an attorney for XRP, continued his support for the token by contesting the lawsuit foundation since federal courts already declared that XRP sales to retail investors do not constitute securities.

Coinbase’s decision to delist XRP soon after the SEC’s initial lawsuit has caused some to question the basis of the new charges.

The Oregon lawsuit identified major assets, including Aave, Avalanche, Uniswap, and Near Protocol, together with XRP as the tokens being investigated.

The operational procedures regarding selection criteria for wrapped tokens within the lawsuit remain unclear concerning which ones are included and which ones are left out.

The XRP lawsuit settlement process with the US SEC, along with the preparation for an IPO, faces possible delays because of existing enforcement actions against Ripple.